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How to Prepare Your eCommerce Inventory for Sales Season in 2024?

How to Prepare Your eCommerce Inventory for Sales Season in 2024?

The sales season occurs at different times throughout the year depending on multiple factors such as holidays, festivals or eCommerce selling platforms feeling generous and rewarding their patrons with discounted products. In India, a country with a vast and diverse population consisting of various festivities celebrated throughout the year by different cultural groups, eCommerce retailers have a good opportunity to participate in these celebrations by attempting to boost sales and fulfill the requirements of customers during the festive season. While many segments of the year can be considered the de-facto sales season, it is a lot more complicated than that in reality due to the sheer number of festivals celebrated in the country compared to other nations such as Diwali, Dussehra, Christmas, Ramzan, Eid and Independence Day, just to name a few. Because of this, it would be prudent for eCommerce sellers to partake in inventory preparation in advance, to take full advantage of customers’ skyrocketing demand for various holiday-specific commodities. In this blog, we will go into detail about inventory preparation for sales season in 2024, the benefits associated with it and 10 tactics to follow to make the most of it. What is Inventory Preparation?  Inventory preparation is an aspect of inventory management that involves making changes in a retailer’s inventory based on various factors such as demand, seasonality, festivals, sales and supply chain adaptability. Preparing inventory is usually done after prior inventory forecasting and assessment to ascertain the demand for various products and the quantity of those products that need to be stored to fulfill that demand.  Preparing inventory for sales season in 2024 such as during a major holiday or festival involves determining which products customers would generally require during that time period. This varies as per the type of festival. For example, during Diwali season, the most highly-demanded commodities would be sweets, gift hampers, flowers, diyas and much more. Thus, for retailers who sell these items or ones who want a slice of the market share, these products would have to be stocked in large quantities and be readily available to fulfill orders whenever they come in. [contactus_uth] Benefits of Preparing Inventory for Holiday Sales Season in 2024 Prevents Stockouts By preparing inventory for the sales season by efficiently forecasting demand levels and analysing the historical metrics of prior seasons, retailers can effectively identify which products will have heightened demand and ensure that they are ordered in sufficient quantities. This helps prevent stockout situations from occurring and helps businesses fulfill every order that is placed.  Avoids Over-Stocking By performing pro-active forecasting and analysis prior to major festive seasons, retailers can safeguard their investments by preventing over-stocking of products due to inaccurate estimations of demand levels. Similarly to preventing stockouts, retailers can identify which products will have the highest demand and focus on stocking those, rather than other products, which may not sell as well during the season. Additionally, they can also have sales to get rid of products that have low demand or are close to expiry. Boosts Sales By successfully preparing their inventory, retailers can ensure that the best-selling products are always in-stock, leading to every order being fulfilled. Seasonal demand entails that only the specific products and gifts that are required for the festival will be purchased by customers. If retailers are opportunistic, they can focus on selling the products that have a high chance of generating sales and thus, will gain a competitive advantage over their rivals by being able to fulfill the festival-specific requirements of every customer. Increases Profit Margins Sales and profit margins are usually co-related and when there is an increase in one, the other also benefits. By preparing inventory for festive seasons in advance, retailers can focus on cutting costs in logistics and operational procedures, and also streamline their ordering and replenishment processes to optimise storage, transportation and manufacturing costs. The minimising of all these expenses in combination with increased sales will have a profound impact on the profit margins of a company. Enhances Customer Satisfaction Customers have very specific requirements during festive seasons, whether they are purchasing items for themselves or sending gifts to their loved ones. Retailers who are able to fulfill these requirements at a reasonable price can instantly create a highly demanded niche and out-compete their rivals. If customers are satisfied with the overall order and delivery experience, they are likely to make this satisfaction known online through positive reviews and ratings, and are bound to highlight the brand to friends and family that also have similar requirements. This enhances the overall image of the brand in the eyes of both existing and potential customers. 10 Tactics to Help Your Inventory Preparation for the Festive Season in 2024 Prioritize Value Over Speed Rather than simply focusing on fulfilling as many orders as possible in the shortest timeframe, retailers need to optimize their fulfillment and optimize or reduce shipping costs in order to provide better rates to their customers. This can help be a differentiating factor if there are many other competitors trying to take advantage of the festive season. Various promotional offers and discounts can be given to customers to enhance their satisfaction and help them save money while at the same time, enabling them to buy more products due to their perception that they are getting a better deal. You can also read about Peak Season Shipping here. Plan in Advance Retailers need to plan for the sales season at least 6 months in advance in order to ensure that everything is implemented smoothly and there are no hiccups. They need to discern what their CM targets need to be, what their budget cap would be for the festive season in question, what type of offers they want to run, what products they are going to launch, and what their overall business objectives are to make the most of the increased demand. Suggested Read: How to prepare for Pre-Order for eCommerce Stores? Increase Your Business Capacity During the festive season, retailers need to provide an expanded range of products and services over their regular operations so that they can capitalize on fulfilling the specific requirements that customers have. This includes increasing the available storage space to make room for larger amounts of inventory that need to be stocked and also making sure that suppliers are up to speed on the escalated targets so that there will not be any delays in replenishing inventory levels, especially for high demand products. Implement Product Bundling In order to make use of the increased demand levels during the sales season in 2024, retailers can provide optional product bundles by combining SKUs with high sell-through rates with ones that have lower sell-through rates. This enables businesses to encourage customers to spend more on what they perceive as value-for-money offerings while simultaneously being able to get rid of low-demand or close-to-expiry products.  Utilize Staggered Product Releases By releasing new products in various phases, businesses can maintain the interest of customers for longer periods of time, as opposed to just releasing them at once. For example, Apple generally has 2 to 3 keynotes a year - one for the new iPhones and software features, one for the new macs and if needed, one for tertiary products such as new AirPods or a new apple watch. By having these events spread throughout the year, consumers will always have something to talk about and can consider purchasing one of the many refreshed product iterations. Offer Product Previews and Cheat Sheets Product previews and cheat sheets, which are promotional pages that consist of a summary of vital product information, can be useful when trying to generate traction for a specific product or event. By providing users with a sneak-peak of a new product instead of unveiling it in its entirety, retailers can achieve high levels of excitement and anticipation in their customers. This generally helps spread the word by customers informing their family and friends, who in turn inform more and more people. Employ Discount Thresholds It is critical to employ appetizing discounts for high-demand products to generate interest in the minds of customers. However, retailers should also not offer high discounts from day 1. For example, they can start with 10% and if they are not satisfied with the performance of the discounted SKUs, they can add another 5% to see if it performs better. Retailers need to maintain a fine line between getting sales and maintaining their profit margins. Sell Festival-Specific SKUs Retailers should produce, market and sell festival-specific merchandise, not only to take advantage of the high demand for those products but also to protect their general flagship products. It is key not to include these products in the sale or offer discounts on them as that can diminish their perceived value in the future. By segmenting inventory specifically for an event or season, retailers can instantly continue to sell their regular items once it is over and normal service resumes. Avail of Additional Services With a 3PL Extra services that can entice customers to return to a brand can be offering discounts or offer coupons, providing free shipping and discounts on minimum cart values, just to name a few. These value-addition services can easily be provided by a competent 3PL fulfillment provider so it is key for eCommerce businesses to take advantage of them to keep their customers engaged for longer periods of time. Prevent Stockouts of Best-Selling Products By planning, forecasting and strategizing in advance, retailers are able to ascertain how much inventory they require for specific SKUs according to their demand levels during the relevant season and SKUs. It is also important to prevent stockouts of flagship products from occurring as these products will have continuous demand before, during and after the festive season is over. Conclusion: Partner With WareIQ to Organise Your Inventory for the Festive Season in 2024 Inventory preparation during the sales season in 2024 is crucial for an eCommerce business to sustain itself during the periods of the highest demand rates in the industry. By capitalising on this demand and being ready and able to fulfill every order, retailers can instantly boost sales and increase their profit margins. However, small and medium-sized businesses may struggle to cope with the added pressure and increased fulfillment requirements. To compete with the bigger companies in the market, these businesses can level the playing field by partnering with a 3PL company like WareIQ. If you are an eCommerce retailer that wants to prepare your inventory for the festive season or any other eCommerce-related assistance, we would be happy to help. WareIQ is a specialist in eCommerce fulfillment and has amassed a vast amount of experience and knowledge in the industry, making it one of the fastest-growing 3PL fulfillment companies in India. Through its use of technology like a custom WMS, a nationwide network of fulfillment centers and unique features such as an app store and RTO support, WareIQ can enhance the user experience of every retailer that chooses to partner with us, in addition to ensuring that your customers receive the best service. Some of the features that make WareIQ one of the best options in regard to inventory preparation for the festive season are listed below: Product Segmentation We can intelligently segment your SKUs based on their performance, demand and other factors to increase your sell-through rates. Exceptional Forecasting Methods We help in forecasting your demand using historical data so that you can optimize your inventory preparation. Automated Inventory Replenishment We provide automated inventory replenishment triggers that can be set as per your preference to ensure that your best-selling products are always in stock. Sales Season: FAQs Should sellers keep the rates of their SKUs the same on different selling platforms and on their own websites?Brands that generally deal in standardised products should keep their prices the same. However, eCommerce marketplaces like Amazon and Flipkart can negotiate better rates with banks which results in price disparities on these platforms. For new brands with no historical data, what is a good metric to start tracking?The best metrics to track are listed below:- Opt for a supply-based approach- Analyze BAU data- Monitor industry trends- Take pre-orders (but you may lose out on festive buzz) Can seasonal demand spikes also lead to increased RTOs?This is not always the case. If your products are good and prices are competitive, you may not face an increased number of returns. You will need to still have flexible return/replacement policies in order to gain a customer’s trust to place an online order in the first place. Why is inventory preparation for festive seasons important?Festive seasons often have increased demand for specialised items so it is necessary for retailers to adapt themselves to suit the occasion. How can a 3PL company like WareIQ assist in preparing for the holiday season?WareIQ offers advanced WMS software that can track various aspects of your inventory across multiple fulfillment centers and can integrate with multiple selling platforms. We also provide ultra-fast delivery, RTO insurance and much more.

July 25, 2022

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What is Order Cycle Time? Meaning, Advantages, Strategies to Improve Customer Order Cycle Time in eCommerce in 2024

What is Order Cycle Time? Meaning, Advantages, Strategies to Improve Customer Order Cycle Time in eCommerce in 2024

In the world of flash sales and deals and same-day delivery in the eCommerce business, some sellers find it difficult to keep up while others find it easier and also save a lot of money in the process. This enables these sellers to serve more customers. There is a lot of time between when a consumer places an order and when it is actually delivered. Many businesses strive to reduce their order cycle time as much as possible. Understanding your purchase order cycle time and how to apply it to your business can help you control how quickly customers receive their orders. This article explains customer order cycle time, why it's significant, how to quantify it and what you can do to make it better. What is Order Cycle Time? Order cycle time is a key performance indicator (KPI) that measures and takes into account all of the steps and processes that eCommerce operations must go through to fulfill an order after it has been placed by a customer. Your overall order cycle time will be shorter if your processes are effective and longer if they are ineffective. Understanding your entire order cycle time is crucial because studies have shown that longer customer order cycle times significantly affect a company's ability to retain clients and get new ones. [contactus_uth] Advantages of Purchase Order Cycle Time Tracks Your KPIs As you know now, order cycle time is a key performance indicator that is used to measure a business’s fulfillment potential. It shows how well you can fulfill an order after getting a customer places it through your website or other selling platforms. Even if your customers are satisfied with the delivery time, you still need to track the monetary expenses you spend so that you further streamline all the processes. Reduces Travel Times Reducing the distance travelled to complete a task is one of the easiest methods to reduce order cycle time. Simply doing this can have a significant impact on your efficiency and production because time spent on travelling is time not spent on other value-adding activities. The main factor in the order cycle time is travel. The total purchase order cycle time can be sharply decreased if the distance travelled can be minimized. By emphasizing early errors and creating more effective pathways, you can achieve this. Your resources will be more productive by securing SKUs based on picking ability. A carton flow rack or shelf can reduce storage space and travel time if all of your SKUs are chosen from pallets and many of them are slow movers. Helps Forecast ETA ETA is crucial information for a buyer. Every customer wants to know the ETA of their order before they place it as this can affect their purchasing decisions. An accurate ETA can be conveyed only if the seller has a good idea of their order cycle time and if the ETA is on the lower side compared to the distance the order has to travel, it is believed the order cycle time is working properly. Detects Incompetencies in the Supply Chain Identifying the order cycle time of your business might help you spot supply-chain problems that can be delaying your order fulfillment procedure. A lengthy order cycle time is a sign that your supply chain process needs to be reviewed to find any inefficiencies or extra stages that could be eliminated completely or streamlined. For example, a lengthier order cycle time can result from manual order receipts, which can be labor-consuming and error-prone. You can also see how we analyse supply chain metrics. How can Order Cycle Time be Measured? The calculation for customer order cycle time is as follows: Order Cycle Time = (Delivery Date - Order Date) / Total Number of Orders Shipped Using the above formula, you can calculate the cycle time for customer orders. The following processes are involved in calculating the purchase order cycle time: Collect client informationSubtract the delivery date from the order dateDivide that by the total number of shipped ordersInterpret the outcomes Gather customer information, including delivery and order dates, as well as the total number of shipped orders and enter it into the formula. Some companies keep track of this information in a spreadsheet or client database. You might gather the information you need more quickly with the use of an automated system. When you get your results, compare them to the objectives of your business. You can pinpoint any areas that need improvement by using this method. You can also keep track of the information, recalculate on a monthly basis and evaluate any advancements. 6 Methods to Reduce Customer Order Cycle Time in 2024 Evaluate And Improve Inventory Flow Longer order cycle times can often be attributed in a large part to bottlenecks in the warehouse. For example, check whether goods can be located with ease, if the shelving racks are properly spaced apart to allow for quick movement and if the location of your fulfillment bay is too far away from the picking area. The selection and packing process can be slowed significantly by any of these obstacles. You can shorten the time it takes for an order to be processed by detecting these inefficiencies. Measure your warehouse KPIs first then look for areas where you can make changes. To maximize the use of the available space and increase picking effectiveness, you might need to optimize your warehouse setup and apply warehouse slotting. Set Strict Rules Improving your processes depends on your fulfillment personnel being guided by defined rules and processes. To expedite the process and get orders from the shelves to the packing room as soon as possible, you may be required to reduce the size of the picking batches. To make it simple to sort or pick up returned items faster, you can also establish rules for how and where to leave them. Setting restrictions on when to order additional inventory is also crucial for preventing stockouts and backorders which can slow down your order cycle time. Examine your present delivery management strategy. You should set rules for what to do with the information in the event of delivery exceptions in addition to giving your personnel access to real-time eCommerce order tracking. In order to set reasonable expectations, it's crucial to be open and honest with your clients regarding your delivery practices, such as shipment cutoff times. Have a Backup Plan for Late Deliveries There are many cases where you can face late deliveries because of reasons such as stockouts, inefficiency in the supply chain, technical glitches, etc. So for all these cases, you as a seller must have a checklist of backup plans associated with each situation. You can partner with more than a single fulfillment company, have deals with merchants to dropship automatically in case of a stockout and a WMS that takes care of technical aspects of your fulfillment process. Constantly Evaluate Your Order Cycle Time Order cycle times can vary periodically, particularly if the supply chain is altered or disrupted. An unanticipated delivery hindrance, for instance, can cause an order cycle to take substantially longer than is typical. After deploying an automated system to enhance your warehouse receiving procedure, you can observe a significantly reduced order cycle time. Your supply chain's entire range of factors can have an impact on this statistic. Your order cycle time needs to be closely monitored and evaluated on a regular basis. By doing so, you can decide whether you need to assess your supply chain procedures and make any accelerated changes. It's an excellent approach to assess whether the adjustments you've made have a positive impact on your customer order cycle time. Give Incentives to Involved Resources Order cycle time is something that a seller needs to take constant care of to maintain and try and reduce. It will make no difference to the involved resources whether they fulfill one order a day or 10 orders a day. Giving them an incentive to enhance the quantity and quality of their services, whether it is inventory management, packaging orders or delivering them, as this result in a major reduction in your order cycle time. Outsource Fulfillment The simplest solution to reducing your order cycle time is to delegate the fulfillment operation to professionals. Using a third-party logistics partner to outsource fulfillment is a good approach to guarantee that orders are immediately confirmed, chosen, packed and dispatched. A tech-enabled 3PL should enable you to automate a sizable piece of the fulfillment process. Many 3PLs include technology that easily integrates with your online store. As soon as orders are placed by clients, they are automatically accepted in their warehouses and fulfillment facilities. So, the orders are processed automatically, allowing them to pass rapidly through the fulfillment pipeline and be delivered to your consumers within a few hours. Additionally, by automating the process, less manual work will be required, lowering the possibility of errors while increasing order accuracy. Conclusion: Reduce Your Order Cycle Time With WareIQ Reducing order cycle time is a major concern for most eCommerce businesses as it directly impacts their ability to fulfill orders. The best method to reduce your order cycle time is to outsource your fulfillment service requirements to a 3PL company like WareIQ.  WareIQ’s USP is offering Prime-like delivery to everyone but for much lower costs and with more coverage. We offer services like same-day and next-day delivery and oversee your entire logistics process which helps reduce your order cycle time while ensuring that orders are delivered efficiently and on schedule. Utilizing WMS software, WareIQ allows you to effectively manage multiple orders and decentralized inventory that is located in multiple fulfillment centers at your fingertips while also assisting you in streamlining your fulfillment processes. WareIQ's integration with multiple eCommerce selling platforms ensures that orders are automatically accepted and processed. Orders can be processed and delivered more quickly as a result, cutting down on fulfillment and delivery delays. Additionally, we provide real-time inventory level updates. This implies that your online business will always have precise stock level information, preventing customers from placing purchases for items that are out of stock. As a result, backlogs and delayed fulfillment can be avoided by utilizing and optimizing your sales history and precisely forecasting future demand. Setting reorder points for both finished items and product inventory can be done using this data together with additional considerations like the production wait time. By doing so, you can increase supply chain speed and avoid problems like stockouts and backlogs that could lengthen the time it takes to process an order. Order Cycle Time: FAQs How to calculate EOQ order cycle?The order quantity is divided by the yearly demand and the resulting fraction is then multiplied by the number of working days in the year to determine the EOQ order cycle. What is cycle time in the supply chain?The duration of time it would take to complete a customer's order if all inventory levels were zero at the moment the order was placed is measured by the supply chain cycle time which is a comprehensive metric and is a total of the longest lead times for each phase of the supply chain cycle. What is the difference between lead time and cycle time?Lead time measures the period of time between a customer order and order fulfillment, while cycle time measures the amount of time it takes a team to create a product. Because cycle time fits within the timeframe of lead time, lead time is always longer than cycle time. What is the customer order promised cycle time?This cycle time performance indicator reflects how long it should take from the time a customer places an order to when it is delivered. The cycle time will largely stay the same; it will only change if you can guarantee a shorter time from order to delivery. Is cycle time the same as flow time?No. The time it takes for a single unit to complete the entire manufacturing process is known as the flow time. Cycle time is the average amount of time required to complete the entire manufacturing process for one unit.

July 25, 2022
Average Revenue Per Unit (ARPU): Definition, Formula to Calculate, and Methods to Increase ARPU in 2024

Average Revenue Per Unit (ARPU): Definition, Formula to Calculate, and Methods to Increase ARPU in 2024

While running a business, you must keep an analysis of every important metric. You can observe things such as the quarterly revenue, cash flow, inventory sold, etc. As per the industry and new techniques of gaining customers against more revenue, there are several other metrics too. According to the business type, the KPIs (key performance indicators) needed can vary drastically. For instance, subscription services and product bundle sales will require the use of average revenue per unit, or ARPU. To ensure that your pricing remains competitive and that you don't lose clients to your competitors, it's crucial to properly plan and prepare accordingly. A profitable pricing strategy should be balanced out with an increase that your clients would consider reasonable. In order to make informed decisions regarding your pricing strategy, it is critical to consider what your competitors are doing. In this blog you will precisely learn about average revenue per unit (ARPU) and why it is crucial for business, how can you apply it, and how you can increase the magnitude of ARPU in your business. What is the Average Revenue Per Unit (ARPU)? The average revenue per unit is an important indicator of average profitability generated by each user or subscriber. It is mainly used in the telecommunications and media industries, which have a subscription-based revenue model. In the eCommerce business, it helps sellers in inventory management as a KPI that reflects the data about the average revenue after selling one unit of an item. Most phone carriers, internet service providers, software solutions, and the media and streaming sector use ARPU. It is also used for membership-based enterprises and subscription box services. So while it is a crucial statistic for managing inventory, it may also be used to determine performance when it's impossible to track individual product sales. [contactus_lilgoodness] How to Calculate Average Revenue Per Unit Using the ARPU Formula in? To calculate ARPU, you need to define a certain time period. For reference, the majority of telephone and communications providers determine ARPU on a monthly basis. The number of units or users is then divided by the total income made during the standard time period. Since it might not accurately reflect changes with time, the end date of the period is not used as the denominator. The average of the beginning and end of the determined duration is taken instead. The number of users varies at any one time, particularly in sectors like media and telecommunications. Therefore, in order to calculate ARPU as accurately as possible, the number of units for a specific period must be calculated. The calculation is quite simple. We need two values as mentioned below: The total revenue in a certain time periodThe number of users in that time period Then divide the total revenue by the number of users ARPU Formula = Total Revenue / Number of Users Benefits of Calculating Average Revenue Per Unit Helps Manage SKUs More Accurately Your average revenue per unit, when utilized with SKU monitoring, aids in streamlining the SKU management process. This makes it possible for you as a seller to closely monitor which SKUs are selling quickly, which ones are moving slowly, which ones are more profitable and which ones are eating up your money. After that, you can use these revelations to guide your SKU rationalization efforts. This is the procedure for determining which SKUs should be retired due to poor profitability and sales. Long-term eCommerce revenue is improved by an effective SKU rationalization process since the sooner slow-moving and unproductive SKUs are discontinued, the less money you will need to spend on procurement and holding fees. Therefore, you can easily increase your revenue by leveraging your average revenue per unit to enhance your SKU management. Helps in Strategizing Pricing Plans Optimizing your pricing approach is one of the main ways that figuring out your average revenue per unit can help your organization. This KPI can help you determine whether changing your product's pricing strategy will increase profitability. In order to boost average order value and hence, your average income per unit, this revaluation may entail changing your product bundles. It might also entail gradually raising your product's markup. For an eCommerce business to grow, this is a critical stage. Over time, markups on prices and products need to be modified continuously. Additionally, knowing your average income per unit might serve as a benchmark for your decisions. Enhances Warehouse Management A crucial element in your inventory management procedure is calculating your average revenue per item. It helps you determine whether your inventory levels are ideal since if you have too much inventory, you may experience a lower average revenue per unit because you are paying more for purchasing and managing your inventory. Furthermore, when a product stays unsold on the shelves, having an excessive amount of inventory in stock increases your chances of having deadstock. Due to the cost of purchasing things that are not getting sold, this further lowers your average revenue per unit. However, it is simpler to determine which SKUs have higher profitability and inventory turnover and whether any slow-moving SKUs need to be terminated when you are actively monitoring your inventory movement and average revenue per unit. This makes it possible for you to establish the minimum order quantity (MOQ) for each unit, which is crucial for preserving the ideal amount of inventory throughout your warehouses and fulfillment facilities. By doing this, you avoid ordering too many slow-moving items and too few fast-moving ones. Identifies Opportunities to Increase Revenue and Reduce Costs Finding more ways to increase your revenue is probably one of the main benefits of calculating your average revenue per unit. This indicator enables you to identify which goods and services are effective at bringing in money and which ones are not. In order to maximize your offerings and increase your revenue, you must first choose how to do it. Cost savings are yet another significant advantage of determining your average revenue per unit. Because increased expenditure frequently results in decreased income, your inventory-related costs may drastically impair your ARPU. Therefore, looking at your average revenue per unit will help you determine whether your costs for acquiring and maintaining inventory are too high. This is an excellent way to find any areas where you can reduce your cost of goods sold and cost per unit. Ideally, you ought to consider your ARPU in conjunction with the various expenses incurred. Forecasts Growth and Revenue Finding more ways to increase your revenue is probably one of the main reasons to calculate your average revenue per unit. This indicator enables you to identify which goods and services are effective at bringing in money and which ones are not. In order to maximize your offering and increase your revenue, you must first choose how to do it after optimizing it. Suppose you want to focus more on one subscription box if it has a high ARPU, stock more of it and work to boost subscriptions for it. Alternatively, you might think about pairing well-liked, highly profitable SKUs with sluggishly moving SKUs to increase sales while avoiding deadstock. In the case of eCommerce services, you are aware of the high demand and more profitable products so you can store those and promote them to increase their sales velocity. Pros and Cons of ARPU Pros For investors, ARPU is a useful indicator for comparing a company with its competitors.It works as a metric to analyze a company’s strengths and weaknesses.It shows the acceptability rate among users if the ARPU number is impressively high.High ARPU can also boost a company's reputation. Cons Since ARPU is a metric at the macro level, it can be reported without the specifics that give it meaning.The trajectory of a business may be better indicated by user growth and user churn.There are situations when ARPU is reported without sufficient details.Low average revenue per unit can damage a company’s reputation and investors may find it risky. How Can Average Revenue Per Unit be Increased in 2024? There are several ways to increase ARPU depending on the business type and its usability. Many businesses, including telecom providers, try to increase their ARPU by offering bundles or more advanced levels of service to their present clients. These two different business models use their internal data to determine which demographic groups are most valuable to them. After identifying the most valuable group, the corporation focuses on encouraging growth within that group. Selling their current clients more expensive tiers or service bundles is one strategy used by many businesses, particularly in the telecom industry, to raise their average revenue per unit. Others, like media businesses, concentrate on raising advertising revenue. Media and telecom businesses both do internal data analyses to determine which demographic groups are most valuable to them. The target market for the company's growth will be gen X consumers or families with children if those groups look to be their most valuable customers in terms of their contribution to average revenue per unit. Note: Many companies are decreasing their ARPU but adding more users to generate more revenue. Uses of Average Revenue Per Unit (ARPU) Telecommunication Companies ARPU is a metric used by telecom companies like AT&T, T-Mobile, and Verizon to track the average revenue generated by each mobile phone subscriber. The value of revenue used to compute ARPU for a business in the mobile phone market includes any money from incoming calls and data charges that must be paid as part of the regulated interconnection system, as well as the monthly bills that users pay. Social Media Companies Companies in the social media space like Snapchat and Meta Platforms (formerly Facebook) provide investors with average revenue per unit data. The disparity in these metrics between the two businesses contributes to the substantial discrepancy in the two businesses' values. Subscription Services The results of the metrics can be used both internally and externally to compare subscriber-based businesses and to help predict upcoming service revenues derived from a customer base. Average Revenue Per Unit (ARPU) vs. Customer Lifetime Value (CLTV) Some people mix up ARPU with client lifetime value. Despite their similarities, they both have different metrics. Their differences are laid out below: [table id=41 /] Conclusion: Increase and Maintain Your Average Revenue Per Unit With WareIQ WareIQ is a rapidly growing ecommerce fulfillment company that is based in India. It offers a variety of eCommerce services that can help you to increase and maintain your average revenue per unit by streamlining multiple processes and reducing your storage costs and operational costs. A few ways we can help are listed below: It gives you facilities like a nationwide network of fulfillment centers and offers no MOQ to help lower storage and transport costs and ultimately, APRU.We have partnered with more than 20 of the biggest shipping aggregators in the country and always assign the cheapest and best delivery partner for every order with real-time tracking.We give access to your sales and revenue data to assist in framing pricing strategies and getting further orders.It gives you RTO insurance which prevents the negative impacts of returns management.We help you forecast demand and supply which helps you in maintaining APRU.We help pack your goods in a customized manner (boxes or bags) which helps you in lowering packing costs.We help cut unnecessary involvements that cost you overall on your ARPU.We optimize your sales data and reflect your KPIs. Average Revenue Per Unit FAQs (Frequently Asked Questions) What is ARPU?ARPU is a measure of its profitability based on how much money a product makes from each of its customers or subscribers, and the average revenue per unit. For businesses in the media and telecommunications sectors, which rely on subscribers or users, it is an especially helpful metric. Is ARPU a KPI?Average Revenue Per User (ARPU) is a KPI and can be used to distinguish between the productivity of your sales and marketing departments. What is a good average ARPU?Based on location, industry and pricing model, the average ARPU is likely to vary. As a result, there isn't a constant answer to it.

July 23, 2022
Retail Distribution: Definition, Types, and Factors to Consider While Opting for a Retail Distribution Strategy in 2024

Retail Distribution: Definition, Types, and Factors to Consider While Opting for a Retail Distribution Strategy in 2024

Inventory is the biggest asset for an eCommerce seller but it is not easy to order and store. There are several things to be taken care of before and after ordering products. To remain competitive in the long run, a seller will need to adopt new strategies and broaden their perspective in order to be competitive. By streamlining all their retail logistics activities and having effective distribution management, they can increase the effectiveness of their supply chain processes. As a result, for better efficiency and cost savings, you will require an optimized retail distribution plan. Today we will learn about retail distribution including the types and considerations while choosing the right retail distribution strategy through third-party logistics. What is Retail Distribution? A retail distribution strategy is the process of getting goods from manufacturers to sellers or direct to customers (D2C) through a fulfillment channel. Throughout this journey, products move through many intermediaries such as wholesalers, vendors and retailers or in the case of dropshipping, directly to buyers from the manufacturers themselves without passing through a store or selling platforms. Manufacturers, wholesalers, retailers, agents, etc. are mainly included. Choosing the correct retail distribution plan is the secret to a successful distribution process, higher revenue and long-lasting client loyalty. [contactus_uth] 3 Types of Retail Distribution Intensive Retail Distribution Companies use this retail distribution technique to widely disseminate the availability of their items so they can access the market as much as possible. Brands can accomplish this goal by distributing their goods to as many eCommerce retailers and outlets as they can. Retailers of convenience goods are particularly prone to intensive retail distribution. For example, you can easily find glucose packets in almost all types of stores and malls. Advantages Boosts product awareness Encourage impulse buying Enhances revenue Selective Retail Distribution Selective retail distribution falls between intensive and exclusive retail distribution. With this retail distribution approach, products are distributed to numerous places. However, it is used much less compared to intensive retail distribution. For example, a premium watch brand like Tag Heuer may choose to sell its product to its own branded stores or other selected stores. But places like DMart or Reliance Retail cannot be seen selling Tag Heuer. The reason behind this is that such brands need to imply and maintain a high-end brand image and exclusive messaging. Advantages Ensures good market coverage Offers more control Boosts customer satisfaction Exclusive Retail Distribution Exclusive retail distribution is distinct from intensive retail distribution. This form of retail distribution employs certain distributors who are told to sell products only in predetermined locations. Exclusive distribution is frequently used by companies that sell expensive, high-end goods. This method and a brand's prestige image are therefore related. It aims to reach a certain niche market that is well-defined and capable of buying the product. For example, IKEA malls usually consist of 1 or 2 locations in a city which is also on the exterior of the main town.  Advantages Keeps the firm focused Secures the manufacturer’s finances Facilitates localization 4 Factors to Consider While Choosing the Right Retail Distribution Strategy in 2024 Product Type Routine, limited, and extended products are the three main categories of purchases for retail distribution. Products that are inexpensive and that consumers do not give much thought about while making purchases are considered routine purchases. When a certain brand's product is out of stock, buyers tend to move to another one rather than visiting other places to purchase the same product, making them highly replaceable. Toothpaste and batteries are a few examples. An elaborate retail distribution strategy is advised for these commodities. Customers aren't always loyal to particular brands, so having the products widely available and simple to get enhances the likelihood that they will be purchased. Between routine and extensive purchases are limited purchases. The prices of these goods are often fair. Compared to a typical purchase, consumers take more time to research and compare various products. Mobile phones, washing machines and refrigerators are examples of limited purchase products. Customers consider the pricing and usefulness more carefully before making these purchases. And for these types of goods, either a selective or an intensive retail distribution strategy works best. Extensive purchases include high-risk items like homes, auto insurance and schooling. The intensity of the buying choice also increases as an item's price rises. For certain goods, an exclusive distribution strategy works well since it helps clients see the value in the good or service. To raise the price of each item, some brands even make fewer of these expensive goods. Customer Demand Based on Location Having your inventory close to your customers is an efficient approach to streamlining distribution and fulfillment, regardless of the retail distribution strategy you are already utilizing. Based on previous demand, this would include strategically distributing your product throughout various distribution hubs. If the demand for your goods is high in one area and low in another, you might need to send out fresh orders from the distribution center that experiences less demand and has spare inventory on hand if you run out of stock in a high-demand location. So, products need to travel for longer distances all the way to the high-demand area. Long shipping routes are required to deliver goods to the region with the high demand. This slows down the supply chain and increases shipping costs. Instead of spending time and money delivering the products to your customers, you might be able to save time and money by strategically moving your inventory to the high-demand distribution hub. Similarly, you should provide retailers who have done really well at selling your goods with a greater amount of inventory to avoid stockouts or losing out on sales. Inefficiencies of Distribution Strategies Retail distribution has a lot of moving items and thus, it seems inevitable that your retail operations will have some inefficiencies. It is critical to routinely review your distribution strategy for any ineffective procedures that need to be improved upon or eliminated. You can have a number of partners who are in charge of different aspects of your distribution process. Suppose, you have three partners. One partner manages a retail warehouse, another partner handles fulfillment and a third partner handles last-mile delivery. The rest of the supply chain encounters a delay if any one of these partners experiences an interruption to their regular business operations, which could have a substantially negative impact on your bottom line. Instead of depending on a single partner who is capable of managing all the processes, different people might assist you in streamlining and simplifying the procedure. You should do an audit to search for ways to cut costs as well. Find the most expensive distribution steps and determine if there are any less expensive alternatives. Since products must pass through several shipping zones before they finally reach the buyer, quick distribution of goods from a single central hub can become very expensive. Instead of using local distribution, fulfillment services can speed up deliveries while drastically reducing freight expenses. Even obstacles in your distribution process may be discovered by a thorough audit process. Suppose a warehouse is poorly organized, pickers may have a harder time finding what they need, which would slow down distribution and fulfillment procedures. You may determine what needs to be improved and how to address those bottlenecks by recognizing these problems. Cost While Partnering With a 3PL Every retail distribution plan has advantages and disadvantages with the associated cost. Knowing the costs can help you choose the best retail distribution strategy for your retail company and guarantee that your firm’s finances can cover the costs and any potential losses. Extensive retail distribution strategy planning entails product availability in as many markets and retail locations as possible. It should therefore come as no surprise that raising product awareness is expensive, particularly if a company wants to sell its goods in every store. The location of the retailer may affect the prices. As a result, if you intend to use an intense distribution strategy for your retail firm, this is a crucial issue to take into account. While it appears that selective retail distribution is less expensive than the intensive option, disagreements with distributors can result in significant losses. Because of the nature of such a retail distribution strategy, this could be costly. Companies must make sure there is enough effective communication when problems arise in order to address them all right away. Conclusion: Optimize Retail Distribution With WareIQ Retail distribution is an essential aspect of eCommerce fulfillment as it enables goods to be transported from the manufacturer to the seller’s fulfillment centers and eventually to their customers. To accomplish all of your retail distribution goals, you can consider partnering with WareIQ.  Using WareIQ, you can strategically split up your goods and store them in multiple fulfillment centers, located across the country. By keeping inventory closer to your customers, you can speed up delivery while saving money on freight. We also take care of the entire range of fulfillment processes from handling the picking and packing of goods to transporting it to your customers. Orders are automatically received, processed and forwarded to the fulfillment queue in our warehouses, where the picking and packaging procedures are started. In order to keep shipping costs down, WareIQ ships your products on your behalf through well-known shipping carriers and always assigns the fastest and cheapest option for every order. Additionally, automation through our custom Warehouse Management System streamlines and improves the efficiency of the entire B2B order fulfillment process by bringing order data and updating inventory levels in real-time, directly into the WareIQ dashboard, where it can then be analyzed and tracked. Retail Distribution: FAQs

July 21, 2022
Fill Rate in Supply Chain: A Comprehensive Guide Including Types, Calculation, Importance and Tactics to Maintain the Fill Rate in 2022

Fill Rate in Supply Chain: A Comprehensive Guide Including Types, Calculation, Importance and Tactics to Maintain the Fill Rate in 2022

Running an eCommerce business has been very competitive since the majority of people now have access to the internet. Each and every website claims to give you a variety of products in the shortest period of time. Due to this, customer expectations have increased in recent years. Any eCommerce firm must have an effective fulfillment process to succeed in a world where customers expect their products to arrive quickly. You cannot afford to have delivery delays brought on by backorders and stockouts if your eCommerce firm is expanding. In order to increase order fulfillment and improve delivery times, the order filling process needs to be carefully watched and successfully optimized. For this reason, fulfillment rate is a crucial metric that eCommerce companies should monitor. The fill rate is directly proportional to the deal an eCommerce company makes with a customer and the revenue it generates from it.  In this blog, we will go into detail about the fill rates in supply chain management, how to calculate it, the importance of maintaining a good fulfillment rate and why choosing a 3PL logistics company is important. What is Fill Rate? Fill rate or order fulfillment rate, is the rate of orders a seller can ship from their available inventory without missing out on purchases due to stockouts, backorders, lost sales, etc. It shows the level of eCommerce management a seller is versed with and whether they are able to meet the demand or fail to fulfill orders. It also helps sellers gauge the demand for various SKUs in their inventory and plan item procurement accordingly. [contactus_gynoveda] Types of Fill Rate While the order fill rate is frequently the metric that most businesses track, there are other fulfillment rates in supply chain management that might provide useful information about how effectively a business' supply chain management is working. They are as follows: Order Fill Rate The order fill rate is frequently tracked because it shows how effectively businesses can meet their buyers' needs. High order fulfillment rates are a sign of a company's ability to fulfill placed orders effectively and on time. Case Fill Rate The percentage of product cases a seller initially ships out of all the product cases the company orders is known as the case fill rate. It is mostly applicable to distributors and wholesalers. Line Fill Rate The percentage of order lines that a company fills out on the bill compared to the total number of order lines is known as the line fulfillment rate. On an order bill, companies keep track of sales made from customer orders as line items.  Vendor Fill Rate Companies that buy products from vendors in wholesale quantities calculate vendor fill rate. This metric identifies the proportion of vendors who have shipped out orders out of all the vendors a company receives orders from. Warehouse Fill Rate The order fill rate is measured using the same metric as the warehouse fill rate. Managers of supply chains determine what portion of all customer orders are filled and shipped from their company's warehouse, which is known as the warehouse fulfillment rate. Importance of Fill Rate The key to optimizing your wholesale inventory management, fulfillment procedures and enhancing customer satisfaction is knowing how well you can satisfy demand. Helps in Brand Positioning When your business consistently completes customer orders and maintains a high fill rate, it enhances its reputation, builds market trust and ultimately leads to positive positioning. This is due to the likelihood that clients will believe they can depend on your business to rapidly process and ship their orders. When first-time clients enjoy the ordering and delivery experience with your business, they are also more inclined to make subsequent purchases. Affects Customer Relations Do you meet and take care of your customers' requirements right away or do you make them wait? Or have you established yourself as a dependable partner prepared to meet the demands of the market? Your credibility and the accessibility of your goods are important determinants of the development of enduring relationships with your partners and clients and result in increased levels of loyalty. The relationship of trust in a business is built by fulfilling what you claim to. Provides Operational Insight Your business may assess how well the supply chain processes are doing by monitoring order, warehouse, and vendor fulfillment rates. Lower fill rates can provide more information about the areas of the process that need improvement and when a seller is aware of this indicator, it can build plans more effectively. You need to examine the strategies you employ to deliver your products to customers by measuring the fulfillment rate. Enhances Inventory and Labour Management If your fill rate is constantly low, then make sure you are keeping ideal stock levels by searching for other suppliers or reviewing your reorder point. It helps you to scrutinize your fulfillment process and the team managing it. Having adequate inventory means that, although you face a consistently low fulfillment rate in a certain location, it may be a problem with the management and so you can check and resolve it.  Upgrades Fulfillment Processes Your capacity to complete orders on schedule may be significantly impacted by an ineffective packing or shipping process. If your fill rate is poor because of packing or shipping problems, you should look into ways you can streamline your fulfillment processes. How is the Fill Rate Calculated? The steps below show you, how to find the fill rate of your company: Calculate the Total Number of Orders That Have Been Shipped Choose the time period for the fill rate measurement before using the below formula. This calculation, which you may perform on a monthly, weekly, quarterly or even annual basis, allows you to assess how well your company completes customer orders at various points of the year. Consider the situation where you wish to calculate the fill rate for the most recent quarter. Find out how many orders in total your business shipped to customers during that time. If during that quarter, clients placed 1,500 orders, use this number in the formula: Hence, the fill rate is calculated as; Fill Rate = (1,500 Shipped Orders) / (Total Orders) x 100. Divide Shipped Orders By the Total Number of Filled Orders Find out how many orders customers made overall during the period. Using the example value of 1,500 total fulfilled orders, assume that customers placed a total of 1,700 orders. Put the values in the given formula: Fill Rate = (1,500 Orders Shipped) / (1,700) x 100 = (0.88) x 100 = 88 Multiply Your Result by 100 You will get a value in a decimal after dividing. To convert this value from decimal to percentage form, multiply it by 100. The fill rate is always represented by a percentage. The fill rate would be as follows using the example numbers of 1,500 completed orders out of 1,700 total client orders for the quarter. Fill Rate = (0.88) x 100 = 88% The fill rate in the above case is 88%. Depending on the business, this can be a good fill rate. For instance, a company would have improved its fulfillment rate over their past rates if it increased it to 88% from a lower percentage. Your company's customer satisfaction rate will be as high as your fill rate and should be close to 100%. What is a Standard Fill Rate and How to Increase it? A standard fill rate varies for each seller depending upon the offered product, selling platform, fulfillment type and company fulfilling it, in addition to location, demand, season, etc. 85-95% is generally considered as a good fulfillment rate. There are a few ways to increase and maintain it: Choose a Trustable and Capable Fulfillment Partner To increase the fill rate, fulfillment partners are one of the more crucial elements to rely on. An incompetent fulfillment system can never achieve a good fill rate. It is robust work to perform without any delays and needs to be fully accurate. A third-party fulfillment company ensures competent fulfillment under the guidance of experts, technologies and many more factors running the market.  Provide an Option of Alternative Products It is difficult to offer an alternative if you sell a product that is too specialized. However, in many cases, you can provide options based on your customer's choices and the resources available to you. Your customers will likely choose to try an alternative if they have to wait for you to ship their intended order. Ask Your Sales Representatives Not to Sell Out-of-Stock Products Your team should check the inventory levels and avoid listing and selling such products that are not available, and concentrate on other options if a buyer is looking for similar products. You can add a timer to notify the buyer when it could be available to buy the product again. Invest in Tools for Inventory Optimization and Demand Forecasts SaaS tools created for the purpose of inventory management and increasing your fill rate are not a luxury but rather, a must that adds useful data to your products and accompanies you on your way toward efficient data management. It automatically reorders products by optimizing your data, forecasting demand, defining inventory space, etc. It knows which of your products sell more quickly and easily. It helps you choose the best time to place fresh orders with your suppliers and make up for any shortfalls. Conclusion: The Role of WareIQ in Maintaining Your Fill Rate Why Choose a Third-Party Fulfillment Company Customer expectations are constantly increasing in the eCommerce segment. It is not easy, especially for small and medium-scale sellers. They have problems running their business or tackling other related problems. A seller may struggle to manage a store on multiple selling channels and a vast supply chain. This is only possible through 3PL fulfillment companies. By partnering with these companies, a seller can avail of different types of fulfillment and can easily maintain their fulfillment rate of over 90%. Sellers only have to take care of the selling and marketing aspects of their products. Post getting an order, all the fulfillment processes like sending an order confirmation message or mail, picking, packing, inventory management, assigning a delivery partner, collecting the payment, re-ordering and many more procedures are taken care of by the 3PL. The quickest approach to increase your order fulfillment rate is to work with a 3PL that makes good use of technology. The majority of your eCommerce fulfillment procedures can be automated using advanced software, which interacts with your online store and gives you superior visibility into your inventory management and warehouse operations. Getting a 90% Plus Fill Rate With WareIQ WareIQ is a pioneer fulfillment company that can give customers a fill rate of more than 90% to our customers.  With WareIQ, you get a decentralized multi-warehouse layout that can easily fulfill your orders within the least time and with the least freight expenses. With its AI and ML-based warehouse management system software, you can optimize your sales data, forecast future demand, maintain inventory across multiple fulfillment centers and eCommerce selling platforms, and keep track of each and every item through a single dashboard. Orders are automatically processed by WareIQ so they are swiftly sent to the fulfillment queue, where products are quickly chosen, packed and prepared for shipping. It eliminates the human input, which reduces the possibility of errors and improves order accuracy. All of these elements greatly quicken the order filling process and let you fill more orders at once, resulting in an increased fill rate. Fill Rate Frequently Asked Questions ( FAQs ) What is a good fill rate?A seller should aim to have a fill rate of 100% if possible. An average fill rate is around 85-95% depending on many factors like demand, supply, season, weather, supply chain, management, etc. What is fill rate performance?The percentage of orders that can be filled immediately from the available inventory of a company is known as the fill rate performance. A high fill rate's impact on customer satisfaction must be evaluated against the cost of keeping larger stock levels. What affects fill rate?A better fill rate depends on the kind of products you sell, the level of market competition and customer loyalty. You can clearly see your stock levels and how they affect the health of your company by conducting an inventory study. What is an OTIF score?On-time, in-full or OTIF is the capacity of a supplier to deliver goods to distribution centers measured by this benchmark, by which retailers evaluate suppliers within specified delivery windows and in full quantities. Sellers mostly measure OTIF scores monthly or quarterly. 

July 20, 2022
The Importance of First Attempt Delivery and 3 Methods to Increase Your First Attempt Delivery Rate (FADR) in 2022

The Importance of First Attempt Delivery and 3 Methods to Increase Your First Attempt Delivery Rate (FADR) in 2022

In the vast world of eCommerce retail, one of the most crucial aspects is to ensure that customers receive their orders on the promised date and time. Delayed order delivery can result in confusion regarding the customer being present at the location, someone being available to receive the order, the delivery executive trying to contact the customer to clarify the location and so on. This is why it is in every retailer’s best interests to try and deliver orders according to the ETA mentioned to the customer to be able to have a smooth receipt of the order by them and to avoid further implications such as initiation of returns, dissatisfaction caused by longer delivery timelines and inconvenience caused to all parties involved because of the inability of the order to be successfully delivered. In this blog, we will go over the meaning of first attempt delivery, its importance, the main reasons for its occurrence and 3 important methods for retailers to increase their first attempt delivery rate. Read along. What is First Attempt Delivery? First attempt delivery is classified as the initial attempt of a last-mile delivery partner to fruitfully deliver an order to a customer, regardless of whether they are in the position to receive it or not. The number of first attempt delivery attempts can vary depending on factors such as the customer’s availability, if there is someone on the premises that can accept the order on their behalf or if the delivery partner has arrived either before or after the scheduled delivery date and time mentioned by the order tracking software.  The number of last-mile deliveries that are successfully fulfilled by a company is known as the first attempt delivery rate (FADR). It is beneficial for retailers to have a high FADR as this indicates that most orders are fulfilled seamlessly, without any errors occurring from either end. Conversely, a low FADR can spell trouble for a business as this can often mean more return initiations, customer displeasure and negative reviews online. [contactus_lilgoodness] Importance of First Attempt Delivery Improves Customer Experience Online shopping customers in this day and age are accustomed to instant gratification due to same-day and next-day delivery becoming the norm and eCommerce retailers constantly striving to find ways to cut delivery timelines even further. Thus, when a delivery is delayed and does not arrive on time, it further amplifies the negative impression that customers will have of that business. When a first attempt delivery is successful, customers will have an overall positive opinion of their whole interaction with a company, as this reiterates how effortless and less-time consuming online shopping can be. Mitigates Added Expenses If a first attempt delivery isn’t successfully accepted by the customer, retailers will have to shell out additional resources on subsequent delivery attempts, which can instantly add up costs. If an order has to be re-delivered multiple times, the general costs associated with the delivery process can triple, reducing the profit margin of the business in the process. A successful first delivery attempt reduces the need for any of these additional costs and retailers can focus on fulfilling other orders instead of being held up in trying to deliver prior orders. You can also read : How to reduce shipping costs? Enhances Brand Image If a company has a high first attempt delivery rate (FADR) and has a ton of positive reviews from previous customers relating to their order delivery experience, it enhances the brand image of the company and inspires confidence in new customers that they will receive their orders in a punctual manner. This can increase conversion rates as potential customers generally trust the opinions and experiences of existing customers, which leads to overall satisfaction and an increase in the popularity of a brand. Helps Gain a Competitive Advantage When a brand has consistently positive reviews regarding first attempt delivery, it will instantly garner a favourable reputation among new customers, compared to a company that is flooded with negative feedback and complaints. Customers spend hours trying to find the best possible deals and if they are assured that they will get better service with one company than its competitors, they will gravitate towards that company for their requirements. Main Reasons for Failed First Delivery Attempts Incorrect Address Information A large portion of the success of first attempt delivery depends on whether the location details are accurate. If the wrong address is entered in the system or is given by the customer, delays in delivery become inevitable due to the need for the delivery executive to find the new location and travel there. Wrong Contact Details Imprecise contact details can have a drastically negative impact on first attempt delivery due to the fact that customers will not be able to be contacted in the event of a delay or if the wrong location details are given. Instead of the delivery executive being able to contact the customer and clarify any queries relating to the location or other details they might have, they may have to send it back to the warehouse and try again on another day. Unforeseen Circumstances Order fulfillment is subject to many factors that are not within the control of the retailer or the delivery partner. Common unforeseen occurrences include vehicle breakdowns, traffic congestion, road repairs and protests or festivities causing road blockages, among many others. Unavailability of the Customer The main reason that inhibits first attempt delivery is the unavailability of the customer when the delivery partner reaches their location. This can be due to multiple factors, some of which can be attributed to the retailer, such as delayed delivery, earlier arrival than the specified ETA or problems in finding the location but can also be the fault of the customer themselves, such as not being physically present due to other commitments, not informing family or friends to collect the parcel or mistakenly giving the wrong address or contact details. 3 Key Methods to Increase Your First Attempt Delivery Rate Consolidate All Your Information Collating all the information about a company’s logistical and operational processes, especially relating to last-mile delivery, and also all the data about the specific order can have a positive impact on their first attempt delivery rate. This ensures that all the information needed by the delivery executive to have a successful first attempt delivery is at their fingertips and can reduce the number of errors or mishaps that occur during the fulfillment process. Employ Real-Time Order Tracking Advanced order tracking software can help significantly in increasing the first attempt delivery rate of a company. By making all the tracking information about the order available to both the delivery personnel and the customer such as the stage of fulfillment, real-time updates when the parcel enters a new phase and any cause of delays or revisions in the ETA, both parties will have a better idea of when the first delivery attempt will be made and the customer can make the necessary arrangements to ensure that the order is picked up. Automate Important Processes Automating processes using advanced software solutions such as sending notifications to customers every time there is an update in the order fulfillment cycle, ensuring that the delivery partner is present to pick up the order when it arrives at the dispatch point and making sure that they have all the relevant information regarding the delivery location and contact details of the customer, increases the chances of the first delivery attempt of being a success. Conclusion: How Can WareIQ’s Offerings Help Improve Your First Attempt Delivery? First attempt delivery is an extremely important aspect of order fulfillment and the success of the company as a whole as it determines how efficiently and frequently they can fulfill orders. If a company has a high first attempt delivery rate, it generally indicates that the time taken to fulfill each order and the costs involved are reduced. On the other hand, if a company has a low FADR, it conveys that the cost and time involved in delivering each order are higher than it needs to be and this can result in fewer sales and reduced profit margins. These factors can have a large impact on the operational capacity of a company. If you are an eCommerce retailer and need help with increasing your first attempt delivery rate and any other eCommerce requirements you may have, you can place your faith in WareIQ. WareIQ is one of the country’s leading eCommerce fulfillment companies. We take advantage of advanced technology in every department relating to eCommerce fulfillment to ensure high rates of success and fewer mistakes or errors. Some of the ways that WareIQ can help to improve your first attempt delivery are as follows: We offer intelligent inventory placement in a pan-India network of fulfillment centers and dark stores to ensure that your inventory is located close to your customers and major transport hubs, which reduces delivery timelines.We offer an advanced WMS that can track your inventory across multiple fulfillment centers and can integrate with more than 12 of the biggest eCommerce marketplaces.We provide branded tracking facilities that can be customised as per your requirements to give you and your customers an enhanced order tracking experience.We have partnered with more than 20 of the largest shipping aggregators in the country and always ensure the quickest and most cost-effective delivery for every order. Give your first attempt delivery the boost it needs to be successful by partnering with WareIQ. First Attempt Delivery: FAQs What is first attempt delivery important?Delivering an order in the first attempt can save a business a lot of time, hassle and money and also saves their customers a lot of inconveniences. Overall, both parties benefit when an order is delivered and accepted on time. What is last-mile delivery?Last-mile delivery involves the on-ground picking up and delivery of an order from the final warehouse to the customer’s location by a delivery executive. What happens if a first delivery attempt is unsuccessful?The delivery attempt will be marked as failed, which indicates that the delivery executive attempted to deliver the order but was unsuccessful. The order will then head back to the warehouse from where there will be attempts to deliver it again until the customer receives it. Why is order tracking necessary?Order tracking provides insights into the journey of a parcel to the customer that ordered it. This helps reassure the customer that it is on its way and they can ensure that they are available to collect it to avoid unnecessary confusion. Does WareIQ offer other eCommerce solutions?Yes, WareIQ provides a whole range of services from storage and inventory management to shipping and last-mile delivery using advanced technology.

July 19, 2022
10 Easy Steps on How to Register & Start to Sell on Etsy in 2024

10 Easy Steps on How to Register & Start to Sell on Etsy in 2024

In addition to other e-commerce websites focusing on vintage or handmade goods, selling on Etsy will be a great business to start as Etsy will be one of the top online marketplaces in the world in 2024. Therefore, handcrafted, vintage, and craft materials should be your ultimate goals for selling and increasing your inventory. Because of its extensive selection of products, which includes fashion, photography, art, wedding essentials, jewellery, health & beauty items, gourmet goods, and many more, Etsy distinguishes out from other marketplaces. SaaS-based and Open Source platforms like Shopify, Magento, and WooCommerce are all compatible with Etsy. As a result, vendors are ready to connect their online stores created on these platforms with an Etsy store. After reading this post, you will know how to sell on Etsy in 2024 successfully. Since its establishment in 2005, Etsy has become one of the largest online marketplaces in the world. Etsy has 4.1 million active sellers and 81.9 million active shoppers. In addition, Etsy.com has more than 50 million unique things for sale. One method to earn money online and launch a successful business is by learning how to sell on Etsy. To start selling on Etsy, please continue reading if you want to build a business and earn money by selling goods to this enormous pool of prospective customers. Read- How To Sell On Amazon What is Etsy? As an online marketplace, retailers can sell on Etsy, and buyers can purchase artistic products, collectables, craft materials, and vintage objects that are hard to obtain in a conventional online store. Customers search the Etsy marketplace for handmade things rather than mass-produced items. It provides a platform for part-time or full-time small company owners, such as those who own art galleries and artisan craftspeople, to display their products. In addition, retailers can sell on Etsy to a broader clientele without building their websites, as with Shopify (you can also sell on shopify). It is a hybrid business that blends an eBay-style marketplace with the energy of an art show. On Etsy, shoppers may discover antique and handcrafted goods, personalized children's toys, made-to-order artwork, hand-printed clothes, and more. On Etsy, antique goods make up a sizable portion of the marketplace. The minimum age requirement for objects to be considered vintage is 20 years. You may get a broad range of collectable things for an affordable price. The platform uses a specific storefront where an Etsy merchant may pay to list their goods. Etsy is the world's top platform for art and collectables because of the distinct niche it fills. It is important to note that Etsy does not produce the goods. Instead, it serves as a middleman, bringing buyers and sellers together in a single marketplace. You can even sell on Etsy and utilize its features to their fullest while on the move if you download the iOS or Android Etsy app. Etsy is the most popular marketplace for art and collectables in the world due to the distinct niche it fills. [contactus_gynoveda] 5 Reasons Why Should You Sell On Etsy in 2024? In the past, artists consigned their goods and sold them at fairs and open marketplaces. Although the internet made it possible to connect with customers even in their local area, professionals didn't feel the need to have their website. Then Etsy appeared; it allowed every retailer to create a customized online "store" with complete internet business capabilities and manage their business using its straightforward setup process. It's a quick, easy, reasonable, and efficient way to attract clients. Customized Store A personalized storefront, or an online store hosted at Etsy, is something very few other marketplaces provide. Aspiring entrepreneurs may list all their products in one location, brand their store with a logo and unique taglines, and make their regulations. Retailers can now POD (print on demand) goods to sell on Etsy. As a result, you may directly market your unique creations on various products ranging from customized apparel to handmade goods and crafts supplies. Large Audience As was already said, Etsy boasts an impressive 33+ million active users, 40% of them are return visitors. It demonstrates how much the customer adores Etsy. These great signs inspire merchants to open their shops and start to sell on Etsy right away. Own Shipping Policies The business owners who sell on Etsy are in charge of listing items on Etsy. Vendors can design restrictions for shipping, refunds, and exchanges thanks to it. Most Etsy sellers work part-time jobs. Therefore they cannot offer competitive shipping or refund policies like the major online retailers. Etsy is fully aware of this. They are given the liberty to select their policies. Customers are urged to buy more holiday decorations during these months because Etsy guarantees free shipping, further boosting sales. Customers don't want to pay a large amount of money to transport their ordered products to their place; they genuinely want to experience the allure of "Free Shipping." Mobile Commerce With a great mobile app and a robust mobile commerce presence, Etsy supports third-party merchants. 66% of all Etsy visitors came from mobile devices in 2017, and 61% of all Gross Merchandise Value(GMV)will be transacted there in 2020. Statista reports that from the first quarter of 2017 to around 6% in 2019, the proportion of Etsy mobile sales increased. It consequently provides excellent m-commerce visibility to online Etsy entrepreneurs. Gross Merchandise Sales(GMS) grew, as a result, rising from 3.9 billion to 4.1 billion dollars in 2021. ETSY's Offsite Ad The new Offsite Ads have been added to Etsy's redesigned ETSY Ad Tool. In the past, sellers were required to pay for Google Ads and boosted listings. However, the most recent upgrade does away with the requirement for vendors. Instead, use the new Etsy offsite ads for advertising your products on Etsy and other websites under the Offsite Ads section. The most attractive feature is that you only have to pay if a customer clicks on your ads and buys something within 30 days. At COVID19, Etsy made a significant contribution by covering the cost of the offsite advertising. As a result, new business owners may quickly boost their earnings by drawing a sizable audience. You may Also Read- How To Sell On Myntra How Much Does it Cost to Sell on Etsy? Like any other online marketplace, business owners who sell on Etsy are charged fees for displaying and selling things. Therefore, you must pay for the expenses associated with conducting business on Etsy, even if enrolling and opening an Etsy shop are free (unless you choose a premium membership plan). If you use Etsy Payments, these costs will be automatically taken from the proceeds of your purchases. If there are still costs you owe at the month end, you are in charge of paying them just like any other bill. In this case, Etsy will immediately charge the payment card you have signed up for auto-billing On the other hand, if you operate in a nation that cannot use Etsy Payments, you will be in charge of monitoring and paying your platform subscription each month. Despite this, Etsy levies different seller fees: a listing fee, a transaction fee, and a cost for processing payments. Listing Costs On Etsy Listing fees are what Etsy costs you as a seller to list your products in your shop. Each listing on Etsy costs 20 cents, and when an item is listed, listing fees are deducted from your payment account (which you set up in step six). Regardless of whether you sell on Etsy, for items listed, you must pay the listing fee for each product you list. In addition, a listing expires after four months, when you must renew it and pay an extra 20 cents if you wish to retain it in your shop. Because listing costs are charged in U.S. dollars, it's vital to remember that they may vary if you run your Etsy store from a different nation. In that case, the listing fee will be based on the exchange rate. Transaction Costs On Etsy Transaction fees are levied when you sell on Etsy. The transaction fee is 5% of the overall item price, including shipping and gift wrapping, and is charged in your chosen listing currency. Etsy will thus use the current market rate to translate the fee amount from the listing currency to your payment currency if your payment currency differs from your listing currency. It's also crucial to remember that Etsy will charge a fee if a currency conversion is necessary. Etsy Processing Charges You will pay a payment processing fee for each transaction when an item is sold if you accept payments online through your Etsy shop using Etsy Payments. Depending on where your bank account is located, Etsy will incur different processing costs. Etsy charges 3 per cent plus $0.25 for every transaction for American merchants. Additionally, Etsy will include VAT, or value-added tax, if necessary in both their payment processing and other seller costs if you're a seller in a region that is subject to it. Additional Selling Fees On Etsy First, depending on the shipping labels you select, there may be expenses involved with buying your mailing labels through Etsy. Location and other delivery options will affect shipping label prices. Second, you must pay Etsy a 20-cent transaction charge per sale while you sell on Etsy's online store. Finally, you will be responsible for any fees related to any additional services you choose to use from Etsy. For instance, if you use Etsy to advertise your store and items, you'll need to select a daily budget for the campaign and pay per click. In addition, as we previously noted, signing up to sell on Etsy is often free. Etsy also has one premium membership plan: Etsy Plus. Including Etsy ad credits, cutting-edge customization choices, and exclusive pricing, this package offers comprehensive and sophisticated tools to help you manage and develop your Etsy business. Of course, the usual costs mentioned above will still be charged, and Etsy Plus will cost $10 per month. You may also Read - How To Sell On Flipkart 10 Step Process- How To Register & Start To Sell On Etsy in 2024 Starting a business on Etsy is simple. Here are the procedures to create your online store and begin to sell on Etsy. 1. Create An Etsy Account Visit Etsy.com and select "Register" from the menu in the upper right corner of the screen. Enter your name, email address, username, and password after that. You may also create an account directly using Google, Apple, or Facebook. After creating your account, carefully review the platform's policies to ensure that while you sell on Etsy, you abide by their rules. 2. Launch Your Shop From Your Etsy Account It's time for you to launch your store. When logged in, scroll to the bottom of the page on Etsy. Then, "Open Your Etsy Shop" must be clicked. You will be required to provide the language, the currency, and the justification for starting a business in this section. Then, select the options most closely related to you to go on to the next level. And don't worry, if online buyers wish to purchase your things from another nation, Etsy includes a built-in currency conversion function. 3. Select Your Shop Preferences On Etsy Once the setup is complete, you must modify your store's options and settings to reflect how you want your shop and Etsy site to operate. You must also fill out the following information in addition to the shop language, shop nation, store name, and shop currency: Your Business Name You must give your business a name before you can start to sell on Etsy. Select a store name that is no more than 20 characters long, has only letters and digits, and doesn't contain any spaces. Remember that selecting the appropriate name for your store can help with Etsy search engine optimization. Therefore, before choosing a shop or store name, it pays to understand keyword relevance, Etsy SEO, and Etsy search. You must use a tool for keyword research if you need assistance with this. If you've previously selected one, Etsy permits you to modify your business name just once. Shop Title- Briefly describe your shop and the things you sell on Etsy in the shop title. What you do, sell, or offer as an Etsy seller should be clear from your end to buyers. For your Etsy store name. Again, effective keyword utilization is crucial. Links- You can link to your social media pages on the platform. You may quickly spread the word about your storefront to your network by linking to your Facebook page, Twitter feed, and other social media accounts. Store Announcement- Like many business owners who sell on Etsy, you must put information in this part about your Etsy listings or what current and potential customers may need to know when they visit your shop. Message To Buyer- When a buyer purchases Etsy, you may add a note that will be sent to them automatically. You may also add a message to digital purchasers, and potential consumers who buy one of your digital items will immediately get the message. 4. Establish store policies In the Shop Policies area, you may define shop policies that are particular to the sales of your products. These consist of: Welcome Greeting- To offer buyers a better understanding of who you are and why your Etsy business is there, you can use this space to welcome visitors and provide a few facts about yourself. Remember to include relevant keywords. Shipping Policy: Include all the information your clients need to know about how and when they may expect to receive their purchases from you, including how you ship, where you ship to, and numerous other specifics. Refund Policy- Your refund policy should specify what you'll do and won't do if a customer requests a refund. Seller Information: This section contains all the details buyers could need to know about your Etsy shops, including your address, phone number, and email address. 5. Describe Your Shop You may access the Members, Story, and Manufacturer's areas using this tab. In addition, the "Your Shop" menu provides access to the "About Your Shop" option. Members- This area may be used to link to both your user profile on Etsy and the profiles of any other people associated with your Etsy business or who work there. The purpose of your Etsy store- Your attraction to the website and your favourite aspects of the items you manufacture or sell there can all be described here. You may use this part to link to your blog, Facebook, and other outlets, which is a terrific approach to help your consumers get to know you better. Manufacturers- List any external vendors you work with to produce your goods here, along with a brief description of what they each do for you. 6. List Your Belongings It's time to establish item listings once your Etsy store is operational. The following fields for your online store must be completed when establishing a listing on Etsy: Title: Just like the title of your online business, you need to make sure the title of your listing includes pertinent keywords. In the same way, buyers would look for the products and describe the items you are selling. For instance, describe it as a "yellow halter neck top with sequins" rather than just a "beautiful shirt." On the listing- Here, you must decide the nature of the item, the maker(s), the year of manufacturing, etc. Category: You may classify items in your Etsy store using the category feature. When feasible, select the category and subcategory that best suits your product. Quantity and Cost: You must provide the cost and quantity of the goods sold. Don't forget to include the costs of creating, selling, and promoting your items on Etsy when inputting the inventory quantity and pricing. Additionally, be sure to provide any details about your many product variations, including sizes, colours, materials, and other variations. Product Description: When selling online or when you first join Etsy, you should always add keyword-optimized product descriptions. However, it would be best to use language your buyers can readily comprehend. Product photos: Whether or whether you have promoted listings, you should have at least one, preferably more, pictures of the item so that shoppers can see what they are buying. Never post photographs on Etsy that are of poor quality, as many Etsy merchants do. Instead, make sure that each of your pictures is appealing and attempt to give each of your goods a white backdrop. Alternatively, if you decide to utilize a custom backdrop, be careful to use the same one throughout all of your photographs. If you can't keep track of all your images Adjust Thumbnails: The photos that your customers view when they search for or come across your goods are called thumbnails; they should be adjusted. When you sell on Etsy, the significance of selecting the appropriate thumbnails cannot be stressed because they are crucial in getting people to click on your listing. Additionally, thumbnails influence how your Etsy shop appears and feels, so stick with a consistent appearance to strengthen your brand. Fixe Shipping Charge: Enter your items' delivery information after that. This comprises: Shipment chargesTime of processing Origin zip codeSize and weightwhere you plan to shipFree delivery If you need to visit the post office or contact the USPS first to confirm rates, you may easily edit the shipping pricing and choices area information afterwards. 7. Check Out Your Listing Before posting it for the first time, click "Preview Listing" to see how your Etsy shop appears to customers. It is essential to make any necessary improvements before your shop opens for business. Click "Finish" if you are satisfied with how everything appears. 8. Choose An Etsy Payment Option On Etsy, a variety of payment options are available. Whether your clients prefer PayPal, Etsy Payments, or any other electronic payment method, you may accept whichever works best for you. Due to its simplicity and convenience as a payment option, Etsy Payments is used by most platform-based Etsy sellers. With this option, you may use credit cards, bank accounts, debit cards, online shop credit, Etsy gift cards, and other payment methods. 9. Add Billing Details You will need to input billing information, such as a credit card number for identification and authorization and a card where the platform can charge your fees and commissions, depending on your place of origin. Once you've completed this, you're all set up and can begin advertising and optimizing the products you're selling. 10. Optimize Your Etsy Store Etsy is a terrific location to establish a small business store without having to pay for and deal with in-person sales, but in terms of how to be found, it's similar to Amazon, eBay, and Google. For your products to sell on Etsy differs from listing them there. First, you need a solid marketing plan to draw people to your items and persuade them to buy. This involves using Etsy SEO, advertising, branding, and various optimization techniques for different sales channels to bring your goods in front of potential buyers who are purchasing online. Here are some methods for improving your Etsy store: Complete Your Profile: As one of the numerous Etsy merchants, your profile on the website is a terrific method to increase your trust. Add a picture and a brief biography about yourself. This strengthens your relationship with your audience on a more personal level and fosters confidence, increasing the likelihood that they will buy your items. Add a Store Bio: You may provide extra information about your eCommerce store in the business bio area. Use the 5,000 characters you have carefully to create an intriguing tale. Because people are primarily motivated by emotion, a good tale is the best tool. The possibility of employing narrative to assist in establishing deeper relationships with your potential clients is ideal in this part. Use templates: The marketplace on Etsy provides merchants with a wide range of templates that can be used to change the look of your business. An excellent strategy to help your buyers remember your Etsy store is to find a template that accurately represents your brand or the type of crafts you sell on Etsy. Using Marketing And Automation Tools: Marketing can help you even sell on Etsy app. One such tool is the Etsy Seller App, which lets you manage all of your listings from your phone. The app also enables you to get alerts whenever something occurs at your store, such as when you get client feedback, send an item, or if they have a query. You may use Etsy's tools to manage, market, and expand your creative company. Here is where you may read more about them. Additionally, the platform contains tools created for each step of the development of your business, and you can access more sophisticated tools with a monthly subscription plan. Conclusion A worldwide marketplace is Etsy. Selling here will increase cross-border sales and provide your brand with global exposure. Remember that most business owners, who sell on Etsy store owners have found success after starting modestly. The biggest challenge to selling on Etsy is frequently the hesitation to begin. You don't need a large staff because 79 per cent of Etsy enterprises are managed by lone entrepreneurs, with 97 per cent operating from their homes. Why not take advantage of this opportunity to get started when there are millions of prospective customers and the chance to share your unique items with the world? If you need help in fulfilling your orders on Etsy, you think of partnering with WareIQ WareIQ is one of India's leading eCommerce fulfillment companies that provides a variety of fulfillment services including a WMS that can integrate with more than 20 of the largest eCommerce marketplaces including Esty and track inventory in real-time, across multiple fulfillment centers. [signup] Sell on Etsy FAQs(Frequently Asked Questions) How to manage a sale while you sell on Etsy?On Etsy, click "Your Account" and "Shop Manager" to set up a sale. Then click "Sales and Coupons" under "Marketing." Locate the "New Special Offer" option and click it to finish.Following that, you may choose the kind of discount you want to provide. You can choose to conduct a sale, mail offers to potential customers, or make coupons. To sell on Etsy, do you require a business licence?You don't need to bother about getting a business licence if you aren't running your internet store as a genuine business and aren't making any money. You don't need a business licence if you're a hobbyist, craftsman, or casual Etsy user and want to sell handcrafted items, craft materials, or operate as a creative entrepreneur. Can you sell on the Etsy app?For iOS 10.3 or later-running devices, Sell on Etsy is intended to be a seller-only mobile experience. Android users may also access Sell on Etsy. How much does it cost to sell on Etsy?While creating an Etsy store and signing up are both free, Etsy charges US sellers 20 cents for every listing in addition to an additional 3 per cent and 25 cents per transaction. You will incur a 20-cent Square manual charge per transaction in addition to Square's credit card processing costs if you use Square to sell products from your Etsy store in person that are not synced with your Etsy shop inventory. What products can I not sell on Etsy?Alcohol, tobacco, drugs, drug paraphernalia, and prescription medications are all prohibited items.Human remains and animal products, Hazardous substances, recalled goods, and weapons are all dangerous items. Items that glorify, support, or promote hatred are known as hate items. The list of stuff you shouldn't sell on Etsy includes illegal goods, items that encourage illegal activity, and highly regulated goods. Is it worth it to sell on Etsy?Because it's the simplest method to set up an eCommerce site specialising in homemade arts and crafts and antique items, selling on Etsy is worthwhile. Etsy is simple to use and pick up. The marketplace favours volume merchants with cheap prices and 5-star reviews since it is low-cost and low-risk.

July 19, 2022
How to Choose the Best Amazon Pricing Strategy to Get Ahead of the Competition in 2024

How to Choose the Best Amazon Pricing Strategy to Get Ahead of the Competition in 2024

When you begin selling on Amazon, you will make one of the most critical decisions in setting your prices. It can be tricky, as you need to strike a balance between making a profit and being competitive. Luckily, a few different pricing strategies help you make the best decision for your business. Choosing the right Amazon pricing strategy can be the difference between a successful and a struggling business. What is an Amazon Pricing Strategy? An Amazon pricing strategy is simply a plan for how you will set prices for the products you sell on the platform. It will involve considering your profit margins, operational expenses, shipping costs and the prices charged by the competition. Once you understand what an Amazon pricing strategy is, you can start looking at the different options available to you. One popular option is price matching. It involves setting your prices based on your competition's prices. It can be a great way to stay competitive and ensure that you are making a profit. Another option is to use Amazon's pricing tools. These tools can help you to set Amazon competitive pricing that will still allow you to make a profit. Finally, you can also consider using Amazon dynamic pricing which is where you can readjust your prices based on the demand for the product. [contactus_uth] Importance of Choosing the Right Pricing for Your Products Affects Customer Perception When selling on Amazon, choosing the correct pricing for your products is essential. If you price your products too low, your profit margins will diminish. If you price your products too high, customers will not buy them. It is essential to find a balance between these two extremes when selecting an Amazon pricing strategy. One way to determine the correct pricing for your products is to look at the prices of similar products on Amazon. Helps in Balancing Expenses Customers are more likely to buy products that have free shipping available. See what prices other sellers are charging and price your products accordingly. It would help if you also considered the cost of shipping and other operational costs when determining your prices. You also need to figure out ways to reduce these expenditures as much as possible so that you can maintain your profit margins. Qualifies Products for Amazon Prime Another factor to consider is the Amazon Prime program. Products enrolled in this program must be available at specific price points to be eligible. If you want your products to qualify for Amazon Prime, you need to make sure they are priced according to the specifications that are mentioned. Choosing the correct pricing for your products is essential to selling on Amazon. It will help if you find a balance between making a profit and giving customers a good deal. Considering all these factors, you can ensure that you choose the best pricing strategy for your business. How do You Calculate the Best Price for a Product? When it comes to pricing your products on Amazon, there are a few things you need to consider: Cost of Your Product You need to make sure that you are providing Amazon competitive pricing to attract customers. However, you also need to make sure that you are making a profit. So, it would help if you balance these two factors by ascertaining the cost of producing your products. Competition in the Segment Take a look at what other sellers are charging for similar products. If you are priced too high, you may lose out on sales. But if you are too low, you may not make enough profit. Again, it would help if you found a balance. Finding the right Amazon pricing strategy can be done by analysing the market and setting prices accordingly. Target Market If you are selling luxury items, you can charge a higher price than if you are selling everyday items. It is essential to know your target market and price your products accordingly as people with varying income levels will want and be able to afford very different things. By considering all of these factors, you can develop an Amazon pricing strategy that will help you get ahead of the competition. 4 Tools to Establish Your Amazon Pricing Strategy [2024] If you are selling products on Amazon, it is essential to have a pricing strategy in place to ensure that you get the most out of your products. Here are the top four tools that you can use to establish your Amazon pricing strategy: Amazon Fee Calculator If you want to stay ahead of the competition on Amazon, it's essential to know how to price your products correctly. The best way to do this is to use an Amazon fee calculator. An Amazon pricing calculator considers several factors, including the cost of your product, shipping costs and any fees charged by Amazon. It also compares the prices of similar products sold by other sellers on Amazon. The calculator will give you Amazon competitive pricing for your product based on all this information. Of course, you don't have to use the offered price. You can set your price while using this as a guideline. However, using the suggested price from the calculator is a good starting point to frame your Amazon pricing strategy. It will help you stay competitive on Amazon while still making a profit. Amazon Automated Pricing Amazon Automated Pricing Website If you're looking to establish your Amazon pricing strategy, one of the first things you should look into is Amazon's automated pricing tool. This tool considers the prices of similar products and automatically sets your prices based on various factors. One of the advantages of using this tool is that it can help you stay competitive with other sellers. By considering the prices of similar products, you can be sure that your costs align with what other sellers offer. It can help you avoid being undercut and losing sales. Another advantage of this tool is that it can help you save time. Rather than manually researching and setting your prices, you can let the device do all the work for you. It can free up your time to focus on other aspects of your business. The Amazon automated pricing tool is valuable when establishing your competitive pricing. AI Repricing with Algorithms AI-Powered Amazon Repricing Software When repricing your products on Amazon, algorithms are your best friend. By using an algorithm, you can automatically adjust your prices based on the competition. It ensures that you always offer the best price possible without constantly checking on your competition. There are a few options for choosing an algorithm for your Amazon pricing strategy. You can use a standalone price or a service that integrates with your Amazon account. Standalone prices will usually be cheaper but they may not offer as many features as a service that integrates with Amazon. Once you have chosen an algorithm, you must set up your account and input basic information about your products. After that, you can sit back and let the algorithm do its work. You can monitor your results and make changes as needed. Overall, using an algorithm is a great way to streamline your Amazon pricing strategy. Manual Pricing Manual pricing is the process of manually setting your prices based on factors such as competitor prices, cost of goods sold and desired profit margins. This method can be time-consuming but it gives you complete control over your pricing. One benefit of manual pricing is that you can tailor your prices to specific products and market conditions. For example, if you know that a particular product is in high demand, you can set your price accordingly. Or, if you know that competition is fierce in a specific market, you can adjust your prices accordingly. Another benefit of manual pricing is that you can change your prices as often as you like. This flexibility can be helpful if you need to respond quickly to changes in the market or your Amazon competitive pricing. Of course, one downside of manual pricing is that it requires constant monitoring and adjustment. You could lose sales if you're not diligent about checking competitor prices and making changes to your expenses. Additionally, if your costs change (e.g., if you get a new supplier), you'll need to manually adjust your prices to reflect those changes. Pricing Strategies That Sellers Should Know With more than 300 million active users, Amazon is the world's largest online marketplace. And with such a large customer base, it's no surprise that many sellers are looking to get a piece of the Amazon pie. But with millions of other sellers vying for attention, it can be tough to stand out from the crowd. One way to do this is to offer Amazon competitive prices on your products. But how do you know what pricing strategy to use? Here are four Amazon pricing strategies that can help you sell more products in 2024: Economy One pricing strategy that can help you sell more on Amazon is to offer a lower-priced "economy" option. It can be an excellent way to attract customers looking for a bargain. It can also help you clear out inventory nearing its expiration date. To implement this Amazon pricing strategy, create a listing for your product with a lower price than usual. Be sure to indicate that the product is an economic option. You may also want to explain briefly why the product is being offered at a discount. For example, you could say that it is due to expire soon or has been refurbished. If multiple products are eligible for the economy pricing strategy, you could create a separate listing for each. Or, you could create a single listing with multiple products included. It can be an excellent way to package together products that complement each other. For example, you could offer a discount on a set of kitchen utensils if someone purchases a cookbook. By providing an economy option, you can attract bargain-hunting shoppers and move inventory that you wouldn't be able to sell otherwise. Premium A premium Amazon pricing strategy can help you sell more on products. By charging a higher price for your product, you can communicate to customers that your product is of high quality. It can help to increase customer confidence in your product and ultimately lead to more sales. Additionally, customers are often willing to pay more for products that they perceive to be of high quality. You can communicate to customers that your product is worth the investment by charging a higher price. It can help increase sales and encourage customers to return in the future. Finally, premium pricing can help you to better compete with other sellers on Amazon. It can help you to win customer trust and ultimately boost sales. If other sellers are selling similar products at a lower price, customers may perceive your product as being of better quality. Skimming If you want to sell more goods, one Amazon pricing strategy you can use is skimming. It means setting a high price for your product to increase your profit margins. It can be effective if you have a unique or in-demand product. You can make more profit on each sale by listing a high price. It can help you to sell more in the long run. Of course, skimming only works if people are willing to pay the high price you set. So, you need to ensure that your product is worth your expense. If it's not, people will buy from someone else. If you decide to use skimming as an Amazon pricing strategy, keep an eye on your sales. If they start to slow down, it may be time to lower your prices. Penetration Penetration pricing is when you set a low price for your product to attract customers and gain a significant chunk of market share. You may also offer discounts or coupons to encourage people to buy your product. The goal of penetration pricing is to get as many people as possible to use your product. Once you have a large number of users, you can then increase the price. This strategy can be risky, as you may not be able to recoup your costs if you don't gain enough market share. Penetration pricing can be a successful Amazon pricing strategy if you have a good product that people want. It's essential to do your research and ensure that your target market is price-sensitive before using this strategy. Conclusion Pricing your products on Amazon can be a tricky business. On one hand, you want to price your items low enough to attract customers but on the other hand, you need to make sure that you're making a profit. Try different pricing strategies and see which works best for you and your products. With careful planning and execution, you can find the right pricing strategy for your business to help you get ahead of the competition. If you need assistance with fulfilling Amazon orders and reducing your logistical costs and operational expenses, you can consider partnering with WareIQ. WareIQ is fulfillment company based in India that has shown enormous growth potential and provides services related to every aspect of eCommerce such as storage in a nationwide network of fulfillment centers, picking and packing, shipping through our partnership with more than 20 leading shipping aggregators, a custom WMS to manage your inventory and much more. Amazon Pricing Strategy Frequently Asked Questions: FAQs Are prices on Amazon dynamic?Yes, Amazon employs dynamic pricing which means that product prices constantly change depending on costs and other market situations. How does Amazon keep prices competitive?Amazon is able to sell products at competitive rates due to warehouse automation technology that streamlines multiple processes. It also prompts sellers to have low prices to be competitive. Why is using an appropriate Amazon pricing strategy important?It is important to price your products according to the nature of your audience and how much they are willing to pay for it. If it is too expensive, they might lose interest and shop elsewhere.

July 18, 2022
The Ultimate Guide To FBA Prep Services in 2024 and How WareIQ Can Help

The Ultimate Guide To FBA Prep Services in 2024 and How WareIQ Can Help

For all online sellers, order fulfillment is a difficult task. Fortunately for Amazon sellers, this job is made easy by Amazon's intricate network of fulfillment centers and transport facilities through Fulfillment-by-Amazon (FBA). However, its FBA prep services can be challenging for certain sellers who may struggle to meet the requirements. In this blog, we take a look at FBA prep services, the processes involved in it, why it makes sense and key metrics to keep an eye on. Let's take a look. What are FBA Prep Services? FBA prep services are the processes involved in getting a seller's products ready to be sent to Amazon warehouses so that they can eventually be sold and fulfilled. Amazon takes the onus of order fulfillment, which can get tricky and challenging for the seller. The process might sound simple but involves many steps before you push the consignment out of the manufacturing unit. Amazon expects all its sellers to follow specific standards and procedures for packaging and labeling. Some of these requirements are specific to product categories. Moreover, if international shipping is involved, you are expected to comply with additional practices. [contactus_gynoveda] 6 Processes Involved in Amazon FBA Prep Picking & Packing Picking the order from the storage and packing it as per Amazon guidelines is the most crucial step in FBA preparation services. Although you may be using automated software to manage this step, the task becomes more demanding as your orders keep increasing. Here are some of the instructions for packaging issued by Amazon: All packages must have scannable barcodes and labels. They must be packaged to safeguard them from any damage. All packages must have a unique FNSKU. You need to remove old barcodes present on the outside of each order. You must ship all products to the Amazon warehouse in an assembled state. Different items must be packaged separately. All edible products must have an expiration date. No items should have any pilferage-prevention gadgets enclosed. Cross-Docking This procedure transfers items directly from the manufacturer to the customer or retailer with minimal or no storage. Cross Docking occurs at a terminal with mostly truck docks and the least storage capacity. As the name suggests, it refers to moving the goods through an inbound dock to an outbound dock without any halt in the movement of goods. This is one of the FBA prep services that help streamline logistics and reduce expenses incurred between the origin and point of sale. In addition, it acts as a huge time-saver and lowers delivery timelines. Amazon stresses this step to ensure customers receive their parcels on or before time. Using Advanced Software Robust technology helps optimise every stage involved in Amazon FBA prep. For instance, it enables you to bookmark sales with every customer order, automate mapping and track all deliveries and returns. Amazon's FBA platform has also undergone frequent changes to make tasks easier for you. It allows you to track the inventory and every order as it is shipped. Amazon expects you to use a combination of the FBA Seller App and an online account for the complete experience. Their software can capture and process information relating to your inventory and orders. Amazon's Inventory Performance Index helps map each seller's inventory performance and storage. It shows your level of efficiency in managing your FBA preparation services. Having accurate inventory information enables you to make more informed decisions. Implementing Smart Storage Storage of inventory and finished goods demands a lot of planning that leads to timely deliveries. You need to store the products safely and in an organised manner. To do so, Amazon has smartly designed its storage system to enable speedy processing and dispatch to customers. For example, it introduced Network Commingling (NetCo), wherein a seller can choose to activate order fulfillment from an Amazon center closest to the end user. So the customer receives the order from a nearby fulfillment centre irrespective of the seller's proximity. Amazon virtually swaps the order received by a seller with another NetCo authorised seller. Doing so saves time, effort on handling and label fixing expenses. The inventory stored in such a case is called stickerless inventory. Meeting Amazon Product Compliance Amazon is very firm about its guidelines for FBA Preparation services. Any discrepancy can result in your product being rejected before it is dispatched to the customer. While Amazon allows most products for sale on its portal, there are some strict requirements for shipments to be eligible for FBA. For example, the expiration date and temperature-sensitivity handling information must be in place. Information about dangerous goods, hazardous materials or any other product restrictions must be prominently visible. The product you send must not be on the FBA prohibited products list. Hiring Happiness Engineers Any eCommerce business needs the support of experts to run smoothly. These happiness engineers act as problem-solvers and guides in case of queries and crises. Well-trained happiness engineers can be employed as shipping experts who can guide you on critical matters like achieving a high Inventory Performance Index score. A few things indicate that you need a happiness engineer or that you need to consider collaborating with an agency that knows the job. For example, not knowing how to start your FBA business, being unable to optimise operations, dipping sales or simply wanting to continue the success story of your business are some of the reasons why you would need one. Why Does it Make Sense to Outsource FBA Preparation Servicesin 2024? You can manage FBA Preparation Services in three ways: do it yourself, get Amazon to do it on your behalf for a cost or hire a third-party professional to undertake the tasks. The third-party providers know their job well and can guide you on the best way forward. Here are a few reasons that you may consider outsourcing Amazon FBA Prep Services: Access to Experts Professionals know the rules of Amazon FBA Prep. They have a deep knowledge of Amazon's product packaging and labelling checklists. Hiring them makes them responsible for getting the order accepted by Amazon and can also remove the burden from you of trying to comply with the long list of rules Saves Time and Money Third-party experts are quick at completing the processes faster than you can because of the sheer amount of advanced technology and resources they have access to. Secondly, these third-party providers can better handle discrepancies or changes in orders. You can save time and money and rather, spend it on expanding your business. Improves Business Productivity When you can avoid rejection costs, outsourcing FBA prep services provide value for money. Plus, 3PL companies act as consultants whenever you need guidance and take on all the tasks to get your products ready, enabling you to spend more time focusing on core business activities and thus, promoting business productivity. Avoids Leasing Storage Space Storage space adds a considerable amount to your overall expenses. An experienced service provider can guide you on how to streamline your processes and optimise costs, including warehousing. Cross Docking is a practice that can help save money but needs high operational and workforce efficacy. Your third-party service provider can tell you how to prevent such expenses without putting an additional burden on other resources. Streamlines Selling Processes Your service provider can help optimise your resources and reduce the time taken by every order to travel from your location to Amazon. This scenario highlights better performance and leads to enhanced sales. 3PL companies are often equipped with the resources needed for you to streamline various aspects of the supply chain, leading to more efficiency. Returns Management Handling returns can get troublesome and can involve a lot of additional expenses. Your FBA Partner will usually handle returns on your behalf, thus taking a huge responsibility off your shoulders. They can receive the returned product and share the returns management data with you regularly. Suggested Read: Alternatives to Amazon FBA Services Key Metrics to Choose the Best FBA Prep Services Pricing Selling online is expensive. Your bill keeps expanding and before you know it, you start incurring losses. That's why it is critical to trim every possible cost. For example, some companies may charge you for packaging and storage while others may have additional costs like consultancy fees to pass on to you. While selecting your FBA prep services provider, look at their pricing structure. For example, see if they charge a wholesome amount on set intervals like a fortnight or a month or if they bill you per each item that is sold. You must pay per usage, based on your inventory size for higher business productivity. You may want to consider the monthly pay-out if you deal in many orders daily. On the other hand, if your daily sales are manageable, you can opt for the per-item payment method. Either way, your aim should be long-term profitability rather than short-term success. Location Significant distances between the prep service centre and your transportation facilities can add unwanted costs, which could be a substantial loss-making deal for sellers with fewer shipments or smaller packages. Your FBA prep services company should be located close to the shipping area to avoid delays and additional transportation expenses. Your service provider must be able to guide you on this. Plus, the climate and weather conditions where the prep center is located can affect delivery timelines. You should take advantage of your service provider's expertise to avert such crises. Taxes Different countries have varied tax scenarios that impact business operations and profitability. Therefore, your service provider must have deep knowledge of the tax liability for your business in the nation of operation. Moreover, sales tax happens to be the most significant component in the slab. If your service provider operates in a country with a high sales tax percentage, hiring them can be expensive for your business. Storage Facilities Many sellers use FBA prep service centers as warehouses so that their stock stays in the Amazon fulfillment center and doesn't incur additional storage costs elsewhere. By doing this, sellers can directly send their products to FBA for dispatch and delivery on receipt of the orders. This step also reduces the risk of rejection if the consignment is directly sent to FBA. Amazon usually returns damaged and rejected goods to the seller in around a fortnight. However, once received, the seller needs to run quality checks while incurring extra costs for re-packaging and labelling. So while finalising the service provider, ensure you know all about their storage facilities. Processing Time For every service provider, a key performance metric is time management. A proven service provider can process your orders in the shortest possible time with minimal errors. And if you are selling high-demand products, time plays an even more prominent role in effective customer service. Fast-moving goods need to be processed quickly without any damage. You can opt for a performance guarantee for your FBA Prep Services provider. Customer Experiences The eCommerce industry thrives on customer experience. Your success depends on the type of customer service that is offered by your FBA prep services provider. Check previous customer feedback, reviews online and inquire directly with prior and existing customers of the company to verify the positives and negatives and see of they balance out. Services Offered Before signing up, ascertain the list of services your FBA prep services partner will provide. It needs to include efficient quality checks for all your orders. Poor quality products affect your reputation and customer feedback. Any shortcoming can trigger a negative response from Amazon and initiate a returns procedure. Your FBA preparation services provider must offer multiple layers of quality checks to ensure no loophole goes unnoticed. Doing so is important to save time and costs in managing returns. How to Enhance Your Amazon FBA Experience with WareIQ's Seller Flex Services? Sellers are continually seeking ways to optimise their operations and enhance customer satisfaction. While Amazon FBA (Fulfillment by Amazon) offers a streamlined approach to logistics, integrating WareIQ's Seller Flex services can provide an additional layer of flexibility and efficiency that can significantly improve your selling experience. 1. The Importance of Timely Deliveries Meeting delivery appointments is crucial for the success of any seller using Amazon FBA. Delays can disrupt the entire fulfilment process, leading to frustrated customers and potential losses in sales. This is where WareIQ’s Seller Flex services come into play. By allowing sellers to manage their own inventory and fulfilment processes, Seller Flex helps ensure that products are delivered on time, every time. 2. Streamlined Inventory Management WareIQ's Seller Flex allows sellers to maintain greater control over their inventory. Unlike traditional FBA, where inventory is sent to Amazon’s fulfilment centres, Seller Flex enables sellers to utilise their warehouses or WareIQ warehouses. This flexibility means that sellers can respond more swiftly to changes in demand, ensuring that stock levels are optimised and that products are always available for prompt dispatch. 3. Enhanced Fulfilment Precision The precision of fulfilment is paramount in maintaining customer loyalty. With WareIQ's Seller Flex, sellers can strategically place inventory in crucial locations, reducing shipping times and ensuring that products reach customers quickly. This proactive approach enhances the customer experience and aligns with Amazon's commitment to fast and reliable delivery. 4. Proactive Appointment Management Scheduling delivery appointments is a critical aspect of the FBA process. WareIQ’s Seller Flex services simplify this by providing tools and insights that help sellers plan shipments more effectively. By leveraging advanced analytics and automated scheduling, sellers can secure delivery slots that align with their operational needs, reducing the risk of missed appointments and the associated penalties. 5. Building Customer Trust and Loyalty In e-commerce, timely deliveries are essential for building customer trust and loyalty. By integrating WareIQ's Seller Flex with your Amazon FBA strategy, you can ensure that your customers receive their orders on time, especially during peak seasons or special occasions. This reliability fosters positive customer experiences, encouraging repeat business and favourable reviews. Incorporating WareIQ's Seller Flex services into your Amazon FBA operations can significantly enhance your fulfilment strategy. By providing greater control over inventory, improving delivery precision, and streamlining appointment management, Seller Flex empowers sellers to meet customer expectations consistently. Conclusion: Why Should You Choose WareIQ for Your Amazon FBA Prep? To take advantage of Amazon Prime membership, your FBA prep services provider must have in-depth knowledge of FBA. An incompetent service provider on board can bring in many losses, including costs for non-compliance or rejections. Additionally, they will help streamline processes, reduce costs and provide an enhanced experience. One company that offers FBA prep services is WareIQ. WareIQ's automated software and team of specialists can provide smooth FBA prep services. Here are a few criteria that make WareIQ the ideal choice: We offer superior tech including a custom WMS for automated picking and packaging. WareIQ can handle more than 10,000 orders a day! We expect you to pay only for what you use. WareIQ charges you on a per-item basis and has no minimum order requirements. You can avoid the hassles of rejections at Amazon fulfillment centers. WareIQ can prepare your inventory and run ample quality checks to protect you from such unwanted scenarios. WareIQ's API integrations with various sales channels allow you to map your storage units across the nation from one dashboard. We help streamline your logistics with WareIQ's 'Hub and Spoke Transport'. WareIQ takes care of the consolidation needs for your shipments for an optimised supply chain. A proficient FBA preparation servicer like WareIQ can take some load off so you can concentrate on expanding your business and polishing your offerings. In your series of business decisions, selecting the right partner is one of the most critical. FBA Prep Services: FAQs

July 18, 2022
Top 10 Methods to Increase Average Order Value (AOV) for eCommerce Sellers in 2024

Top 10 Methods to Increase Average Order Value (AOV) for eCommerce Sellers in 2024

The central aim after starting an eCommerce business is to sell more and more products. Some business practices help you get an idea of your sales performance and how to increase it for the betterment of your firm. One method is to increase average order value. You can calculate how well your store is doing by finding out what your AOV is. The tactics in this article can help you to increase average order value after you have determined it. You will be well on your way to increasing the number of orders placed on your online store, whether you decide to implement bundled discounts or a free shipping threshold, post which, you can easily prepare to experience an increase in sales. What is Average Order Value (AOV)? Average order value (AOV) in an eCommerce business is the average amount of money that each customer spends on each purchase that they order from your business. It is an indication of the cash and inventory flow of your online business. High AOV denotes high sales and healthy profit margins. So for new eCommerce sellers, it is often a challenge to increase average order value. [contactus_gynoveda] How to Calculate Average Order Value? To calculate your average order value (AOV), simply put the total revenue you earned and divide it by the total number of orders. Average Order Value(AOV) = Total Revenue (Earnings) / Total Number of Orders (Sales) For example, let's assume that you own an eCommerce store that sells earphones. In July, you generated ₹45,000 in total revenue from 30 earphones that were ordered. Your average order value will be:  45,000/30 = ₹1,500 The value means that a customer is spending ₹1,500 on average on each transaction from your online store. Benefits of Having a Stong AOV in 2024 Boosts Sales and Profits You will notice a surge in sales and profit as the AOV increases. Your business will generate more money overall, the more you make with every order. If you notice an increase in average order value, you can put more money into the expansion of your company and earn more profit. Offers Better Overall Marketing Returns When you spend money on fixed assets and marketing, that amount is more or less a fixed expense that you have to spend on the business. By spending the same amount of money, you can increase average order value and thus, the overall return margin on spending will also increase. For instance, after subtracting the cost of the products and taxes, you would not have made much money if you spent a lot on marketing, especially if your AOV is low. However, your marketing expenditure becomes more profitable when you notice an increase in the average order value. Hence, the necessity of implementing an average order value strategy is vital. Maintains Better Cash and Inventory Flow A better AOV will provide you with a better flow of inventory as well as the cash flow associated with it. You will be providing fresh items to your buyers and never feel a cash crunch in the business. In the case of pumping extra capital into the business, you will be assured of getting a good return instead of fearing the blockage of money due to leftover inventory. Provides Data for Forecasting Orders The insight that the average order value shows you is the market demand for your products. If it is low, you need to order fewer items and offer discounts in order to sell them. And if it has a high figure, you need to reorder more at a particular time to avoid stockouts. 10 Effective Tips to Increase Average Order Value Execute First Time Offers If your company is less than six months old, the majority of your consumers will be first-timers. Promoting discounts to new customers helps raise the AOV. You can offer this specific audience a one-time discount when they purchase multiple units of a well-liked product or special bundle offers reserved only for customers who have never purchased with you before. It will be considerably simpler to persuade your customer to buy with you again if they order many goods and are happy with their purchases. They will have already had a personal experience using your website to shop. As a result, your chances of getting them to buy from you again are higher, which will help to increase average order value. Run Flash Sales Flash sales are special offers provided by an eCommerce seller for a few hours for a set of specific products. These products often have extra discounts during the period of the flash sale. Flash sales increase the sales velocity for hours in a day which can ultimately increase average order value. It is mostly done during the off-season when the AOV is lower. Provide Discount Coupons Discount coupons and gift cards are a physiologically better method to increase average order value. To avoid losing money, you must make sure that your product prices are high enough to prevent a free purchase from your business after the buyer uses the discount coupons. Make sure that customers are aware that they cannot use the discount coupons to pay for current purchases or delivery and implement digital barriers to prevent them from doing so. Offering discount coupons also encourages additional purchases, which helps cut down on additional advertising expenses. Giving clients more for their money is an amazing idea when sales are lagging due to various factors. This deal should not be available all year long because it can become ineffective and result in losses. Have Festive Offers Many buyers wait for festive offers to buy high-priced products, specifically so that they can receive discounts. These high price products are ordered by a few customers but offer a better profit than most other products. These festive offers also add more customers to your shop while helping you maintain your AOV for the future. While these offers help increase average order value, you can sell your old products by giving high discounts on them and free up your money instead of holding onto them perpetually. Initiate a Free Shipping Threshold Offering a free delivery threshold is the simplest strategy to raise the average purchase value. For example, free delivery on a purchase of above ₹500. When customers check out and their order falls short of the minimum amount required for free shipping, you can include an additional notification. This notification will prompt them to add more items to their cart and enable you to increase average order level. Offer a Minimum Order Discount Indians have a tendency to save money and constantly search for the best offers. Buyers may feel guilty about placing large orders. By showing customers their overall savings if they order a certain amount, you can increase average order value and also increase customer satisfaction. This can stop cart abandonment or alterations, which could reduce the total they intended to spend. Customers will feel as if they are getting a better deal. Even if it serves as a preventative measure, demonstrating to customers the financial advantages they get from purchasing multiple things can help raise your AOV. Cross-Sell or Up-Sell Related Products A cross-sell is a product that is distinct from the one that a consumer is currently browsing but that they might also like. For instance, if a consumer is looking at a pair of shoes, you may suggest a pair of socks that go well with it as a recommended product. Adding all the items that the model is wearing in the listing pictures to the suggested items is a great cross-selling strategy. As an illustration, if a tank top in the product photo is being sold, you might cross-sell the jeans that are in it too. Customers are more inclined to buy the two items together since they can see them in use. To increase average order value or profit, you can up-sell by persuading customers to purchase more expensive items or upgrades. For example, if you sell mobile phones, you might up-sell earphones, mobile covers, add-on guarantees, etc.  Offer Same-day or Next-day Delivery An enhanced sense of satisfaction comes when products/services come to customers as soon as possible and they can utilize them. Many companies are doing their best to make their customers happy and that is why all buyers strive to provide amazon prime-like delivery, i.e., offering Same-day or Next-day delivery A seller who offers a slow fulfillment option can be at risk of buyers preferring to choose a competitor that offers faster delivery. So always keep in mind to make delivery hassle-free and available all over the nation. Provide Different Payment Options Many times, a buyer is willing to purchase and pay for the product but in the end, the cart is abandoned due to a variety of reasons. You may try to persuade the buyer by giving them offers on the product or some extra benefits like free shipping but very often, the reason behind it is the lack of payment methods available. For example, a buyer may prefer to pay through UPI to avail of coupon benefits given by a digital payment platform. So the more payment options you give, your AOV will get higher. Have a Clear and Easy Return Policy In an eCommerce business, you must have a return policy because, in the sector, buyers are afraid of getting a fake or damaged product instead of the one they spent their hard-earned money on. The return option gives them a sense of trust which influences them to place orders without worrying about the product quality. Conclusion Average order value in eCommerce is a helpful tool used by businesses to calculate the average value of transactions done with respect to a particular time frame. There are several reasons to increase average order value and several methods to go about it. This is where WareIQ can help. WareIQ provides services relating to picking, packing, reordering and managing inventory which will help you increase average order value by providing smooth and fast fulfillment to ensure better reviews and positioning of your products. When you use WareIQ’s Warehouse Management System, Inventory Management System and other services, you do not have to worry about fulfillment, taking care of returns or placing orders to your merchants manually as all these processes will be provided by us. We also provide a network of fulfillment centers across the country for easy storage and have partnered with more than 20 of the biggest shipping aggregators to provide ultra-fast delivery to every customer. Increase Average Order Value: FAQs Why is Average Order Value used?The average sum of all orders placed with a merchant over a predetermined time period is measured by an eCommerce indicator called Average Order Value (AOV). Sales Velocity Vs Average Order Value.Sales velocity is measured as the rate at which a potential customer progresses through a company's sales pipeline and earns money where as average order value (AOV) tracks the average amount of money a buyer spends each time they place an order. Does AOV make a distinction between each order, even if they are ordered by the same customer?AOV determines transactions per order, not sales per buyer. Even though a single buyer might buy something more than once, each order would be taken into account independently for calculating AOV. How do you forecast the average order value?Calculate your average order value using the formula:Average Order Value = Total Revenue / Number of Orders 

July 16, 2022